Securities Arbitration Lawyers BlogSilver Law Group Investigates Arthur Jacob, CPA and Innovative Business Solutions, LLC
According to recent SEC allegations, from approximately mid-2009 through at least July 2014, Jacob and Innovative Business Solutions, LLC (“IBS”), which Jacob owns and controls, engaged in a fraudulent scheme involving material misrepresentations and omissions and other deceptive devices and practices. Jacob engaged in this scheme in order to obtain and retain investment advisory clients and thereby collect advisory fees.
For at least five years, Jacob (alone and acting through IBS) routinely made false statements and omissions to current clients, prospective clients, and others, where he:
- concealed his 2003 disbarment by the State of Maryland for misappropriating client funds, making false statements under oath, making numerous false statements to Bar Counsel, filing false tax returns on behalf of a client, willfully violating a court order, and
- charging unreasonable fees, as well as his 2005 suspension from practicing or appearing before the Internal Revenue Service (“IRS”);
- misstated to clients the risks and profitability of their investments, including in investment newsletters Jacob drafted and distributed;
- falsely informed clients that he was not required to register as an investment adviser and failed to disclose that in fact, he and IBS were required to be registered as investment advisers with several states; and
- provided false information about the advisory services they provided in order to retain trading authority in clients’ accounts.
Jacob’s and IBS’s false statements and failure to disclose material information was a breach of their duties as investment advisers to the clients. Jacob asserted his Fifth Amendment privilege against self-incrimination in testimony taken by the Commission during the Division’s investigation of this matter.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.