The Jeffrey Matthews Financial Group, LLC Sanctioned By FINRA

• August 20, 2024
• Jeffrey Matthews Financial Group

(CRD#: 41282/SEC#: 8-49352) The brokerage firm is located in Florham Park, NJ and it’s President/CEO is Jeffrey Ross Halpert.

Allegations of Misconduct
irm failed to establish a supervisory system reasonably designed to achieve compliance with fair pricing rules. The firm failed to establish, maintain and enforce a supervisory system reasonably designed to achieve compliance with fair pricing rules. In Addition, the firm’s supervisory reviews of prices focused only on the size of mark-up and mark-down percentages, and the firm did not have any system to determine the appropriateness of the prevailing market price to which those mark-up and mark-down p
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2024, without admitting or denying the finds, the firm consented to the sanctions and to the entry of findings that it charged unfair prices in corporate and municipal bond transaction. The findings stated that the firm failed to consider the appropriate pricing information, as identified in FINA and MSRB Rules, to determine the prevailing market price. Instead, when selling to customers, the firm in all cases used its own cost to determine the prevailing market price, even when its cost was not contemporaneous. And when purchasing from customers, the firm in all cases used inter-dealer bid or offer quotations to determine the prevailing market price. The firm charged unfair prices on 98 bond transactions which, collectively, caused customers to pay $112,932.02 in excess costs.

The findings also stated that the fercentages applied.

The firm was censured, fined $125,000, order to pay $112,932.02, plus interest, in restitution to customers, and required to certify that it has remediated the issues identified in the AWC and implemented a reasonably designed supervisory system, including WSPS.

In addition, the firm has five other disclosures:
• July 2024—“ Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Securities Exchange Act of 1934 Rule 15I-1(A)(1) (Regulation Best Interest or Reg BI).” The firm was censured and fined $35,000.
• August 2009—“ NJ Dept of Banking alleged a failure to report the execution of AWCs between FINRA and Jeffrey Matthews Financial Group within 30 days of execution and a failure to disclosure the AWCs on 2009 insurance applications.” The firm was fined $1,000 and ordered to Cease and Desist.
• January 2009—“ The Jeffrey Matthews Financial Group failed to provide written notification disclosing to its customers the correct lowest yield-to-call in municipal securities transactions.” The firm was censured/fined $10,000.
• August 2005—“ NASD Conduct Rules 3010 ad 2110- Respondent firm’s supervisory system and procedures were not reasonably designed to ensure that the required written consent was obtained before pre-registration searches on web CRD and that the firm retained the required documentation.” The firm was censured/fined $75,000.
• December 1997—“ Effected 3 transaction in account prior to registration and filed false application by failure to report said transactions.” The firm was ordered to cease and desist and fined $1,000.

For a copy of The Jeffrey Matthews Financial Group’s FINRA BrokerCheck Report, click here.

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