- July 17, 2023
- Financial Industry Regulatory Authority
Brad M Jacobson (CRD#: 4859099) is a previously registered Broker and previously registered Investment Adviser.
He entered the securities industry in 2004 and previously worked for Wells Fargo Clearing Services, LLC; Merrill Lynch, Pierce, Fenner & Smith, Inc.; and UBS Financial Services, Inc.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2023, FINRA sanctioned Brad M Jacobson with a permanent bar from all capacities, indefinitely, beginning July 5, 2023. The FINRA sanction states, “Without admitting or denying the findings, Jacobson consented to the sanction and to the entry of findings that he failed to provide information and documents requested by FINRA in connection with its investigation concerning his alleged conversion of a customer’s funds and his participation in an unapproved OBA. The findings stated that this matter originated from FINRA’s review of a Form U5 filed by Jacobson’s member firm. In the Form U5, the firm reported that it terminated Jacobson because he engaged in an unapproved OBA and submitted a service request to obtain a debit card issued for himself drawn on a client’s business account.”
For a copy of the FINRA sanction, click here.
In addition, Brad M Jacobson has been the subject of two customer complaints, including the following:
- April 2022 — “Registered representative was discharged after he: failed to receive approval prior to engaging in an Outside Business Activity (OBA); engaged in activities beyond the scope of what was approved as an OBA; and submitted a service request to obtain a debit card issued for himself drawn on a client’s business account. This activity was not related to the securities business of Wells Fargo Clearing Services, LLC.” Brad M Jacobson was discharged by Wells Fargo Clearing Services, LLC.
- February 2009 — “THE COMPLAINT AROSE OUT OF THE SALE OF AN AUCTION RATE SECURITY (ARS) THAT WAS MADE PRIOR TO THE WIDESPREAD ILLIQUIDITY IN THE ARS MARKET THAT OCCURRED IN FEBRUARY 2008.” The customer dispute was settled for $200,000.
For a copy of Brad M Jacobson’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at firstname.lastname@example.org.