Adam Jacobs Allegedly Violated State Securities Law

Adam Jacobs (CRD #: 4990788), a broker registered with Oppenheimer & Company, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on July 14, 2023. Keep reading to learn more about his alleged conduct as a broker.

Investor Dispute

On June 14, 2023, an investor filed a dispute alleging that Adam Jacobs recommended unsuitable investments that resulted in losses and failed to act in the client’s best interest.

The client further alleged that he executed unauthorized trades, violated state securities law, breached his contract,  and engaged in negligence from 2020 to the date of filing.

The client seeks $300,000 in this pending dispute.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. An investor’s profile contains information about their age, risk tolerance, and financial goals.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 3260

FINRA Rule 3260 requires brokers to receive written authorization from their clients before engaging in discretionary trading. The firm must also approve the designation of an account as discretionary before this trading can occur.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

What qualifies as broker negligence?

Many types of broker misconduct may qualify as negligence. Typical examples include unsuitable investment recommendations, excessive trading, and misrepresentations or omissions of material facts.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration.

Background Information

Adam Jacobs has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Adam Jacobs is a registered broker in 18 states and a registered investment adviser in Florida, Ohio, and Texas.

Kurta Law Can Help

If you worked with Adam Jacobs and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.