Jack Teboda Allegedly Recommended Unsuitable Alternative Investments
Jack Teboda (CRD #: 864760), a broker formerly registered with ProEquities, allegedly gave unsuitable investment recommendations, according to his BrokerCheck record, accessed on May 15, 2023. Read on if you have questions about his alleged conduct as a broker.
On February 7, 2023, an investor alleged that Jack Teboda made unsuitable recommendations of alternative investments and equity-indexed annuities. The client seeks $750,000 in damages in this pending dispute.
In a dispute filed on July 5, 2017, an investor alleged that Jack Teboda recommended two non-traded real estate investment trusts (REITs) that were unsuitable given the client’s time horizon and risk tolerance. The client further alleged that Jack Teboda engaged in the following:
- Unjust enrichment
- Violations of the Illinois Securities Law of 1953
- Breach of contract
- Violations of FINRA Rules
These violations allegedly occurred from 2007 to 2016. The client sought $147,000 and received a settlement of $92,500.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles, which describe investor characteristics, such as their age, tax status, and financial goals.
Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
FINRA Rule 2150
FINRA Rule 2150 forbids brokers from misusing investors’ funds.
FINRA Rule 2020
FINRA Rule 2020 bans the use of deceptive, manipulative, and otherwise fraudulent tactics to influence investors’ decisions. The misrepresentation or omission of material facts violates this rule.
What are REITs?
Real estate investment trusts (REITs) allow investors to generate returns from a portfolio of real estate without needing to maintain the properties themselves. However, REITs tend to be illiquid, which makes them unsuitable for some investors.
What are Blue Sky Laws?
Blue sky laws like the Illinois Securities Law of 1953 are state-level regulations that offer investors an additional layer of protection against securities fraud. They typically also describe which types of investments must register with the state securities board.
What qualifies as broker negligence?
Many types of broker misconduct may qualify as negligence, ranging from recommending unsuitable investments to executing unauthorized trades.
Investors who have lost money through broker negligence may be able to recover their funds by seeking out FINRA arbitration.
Jack Teboda has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 62 – Corporate Securities Limited Representative Examination
- Series 1 – Registered Representative Examination
He previously worked for the following firms:
- ProEquities (CRD#:15708)
- The Concord Equity Group (CRD#:14569)
- Emissary Financial Group (CRD#:44568)
- Money Concepts Capital Corporation (CRD#:12963)
- New England Securities (CRD#:615)
- Franklin Financial Services (CRD#:5435)
Kurta Law Can Help
If you worked with Jack Teboda and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org 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.