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Cary Jacobs Allegedly Engaged in Negligence

Nov 22, 2022 Unsuitable Investments

Cary Jacobs (CRD #: 5029640), a broker registered with Moloney Securities, is the subject of a pending dispute, according to his BrokerCheck record, accessed on November 7, 2022. If you have questions about his conduct as a broker, keep reading.

Investor Dispute

On October 11, 2022, an investor named Cary Jacobs in allegations involving negligence and suitability in 2016. The client seeks $100,000 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile contains information about their age, risk tolerance, and financial goals. 

Some common violations of this rule include:

  • Recommendations of high-risk investments, which may lead to losses for the client.
  • Recommendations of illiquid investments. These investments are intended to be held long-term, and investors may pay high fees if they try to sell them early.
  • Excessive trading, which violates the requirement for quantitative suitability. This means that the overall trading activity in an account must also suit an investor’s goals.
  • Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector may expose an investor to an unsuitable degree of risk.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

What qualifies as broker negligence?

Broker negligence can come in many forms, ranging from unsuitable investment recommendations to excessive and unauthorized trading. Investors who believe their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration.

Background Information

Cary Jacobs has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 3 – National Commodity Futures Examination

Cary Jacobs is a registered broker in Florida and Illinois. He is also a registered investment adviser in Illinois.

He has also worked for Moloney Investment Advisory (CRD#:282140) and Moloney Securities Company (CRD#:38535).

Kurta Law Can Help

If you worked with Cary 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.