Jeff Larson Subject of SEC Civil Suit and Regulatory Action

Jeff Larson (CRD #: 4836889), a broker formerly registered with Arete Wealth Management, is involved in two SEC actions, according to his BrokerCheck record, accessed on February 17, 2025. Read on to learn more about his alleged conduct as a broker.

SEC Regulatory Action

On January 17, 2025, the SEC filed a regulatory action following an investigation into Jeff Larson. In the regulatory action, the SEC alleges that he violated the following regulations:

• Sections 15(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
• Section 17(a) of the Securities Act of 1933
• Sections 206(1) and 206(2) of the Investment Advisers Act of 1940

Alternatively, the SEC alleges that he may have instead aided and abetted Arete Wealth Advisors’ violations of Sections 206(1) and 206(2) of the Investment Advisers Act, and aided and abetted Arete Wealth Management’s violations of Section 17(a)(1) of the Securities Exchange Act and Rule 17a-4 thereunder.

This regulatory action is currently pending.

Securities Exchange Act of 1934

Section 15(a) of the Securities Exchange Act of 1934 prohibits unregistered brokers and dealers from engaging in or inducing the purchase or sale of securities.

Section 10(b) of the Securities Exchange Act of 1934 forbids the use of manipulative or deceptive devices in relation to the purchase or sale of securities. Rule 10b-5 extends this to include fraudulent schemes, untrue statements and omissions of fact.

Section 17(a) of the Securities Exchange Act of 1934 defines the recordkeeping requirements for brokerage firms and other organizations. Rule 17a-4 describes how firms should preserve records, how long these records should be kept, and other requirements for record-keeping systems.

Securities Act of 1933

Section 17(a) of the Securities Act of 1933 prohibits the use of deceptive and fraudulent schemes in the securities business. It specifically bans false or misleading statements and the omission of material facts relating to securities.

Investment Advisers Act of 1940

Sections 206(1) and (2) of the Investment Advisers Act of 1940 forbid the use of fraudulent and deceptive schemes or practices.

SEC Civil Suit

On January 17, 2025, the SEC filed a civil complaint against Jeff Larson, Randall Larson, Arete Wealth Management and Arete Wealth Advisors (“Arete”), Joey Miller, and UnBo Chung.

The SEC alleges that Jeff Larson, Randall Larson, and Joey Miller solicited dozens of investors and clients to purchase stock in Zona Energy. They allegedly engaged in selling away by soliciting these investments without Arete’s approval or oversight. These investments allegedly totaled more than $8.5 million.

Further, Jeff Larson and Joey Miller allegedly made an agreement with Zona Energy’s control person to solicit investors in exchange for discounted shares in the company. They allegedly did not disclose this deal to investors. They, with Randall Larson, allegedly also requested that customers and clients communicate with them via non-Arete email accounts.

Jeff Larson and others allegedly received an anonymous email alleging that Zona Energy’s control person was a convicted felon who had served time in prison for conspiracy to commit securities fraud. However, Jeff Larson and other defendants allegedly continued to at least assist investors in making additional investments in Zona Energy.

The SEC and the U.S. Attorney’s Office for the Eastern District of New York allegedly filed criminal and civil charges against Zona Energy’s control person and others, alleging that Zona Energy was not a legitimate operation and that the control person and other insiders had misappropriated investor funds.

Allegations Involving Liability Releases

Following the filing of these charges, Arete’s CEO allegedly demanded that Jeff Larson and the other defendants obtain liability releases from investors, a process overseen by UnBo Chung.

These liability releases allegedly falsely claimed that investors understood that Jeff Larson and others had not recommended investments in Zona Energy or acted as financial advisers in the process.

Although these releases allegedly disclosed that Jeff Larson and Joey Miller had purchased shares of Zona Energy at a discount, they allegedly did not disclose that they had received these shares in return for raising funds.

Further, the SEC alleges that investors signed these releases in exchange for payments ranging from just one dollar to $5,000—typically much less than they had invested to begin with. According to Jeff Larson’s detailed BrokerCheck page, investors solicited to invest in Zona Energy by the defendants lost almost all of their investments.

The SEC alleges that Jeff Larson, directly or indirectly, violated the following regulations:

• Section 15(a) and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
• Section 17(a) of the Securities Act of 1933
• Sections 206(1) and (2) of Investment Advisers Act of 1940

The SEC further alleges that Jeff Larson aided and abetted Arete Wealth Advisors’ violations of Sections 206(1) and (2) of the Investment Advisers Act and Arete Wealth Management’s violations of Section 17(a) and Rule 17a-4(b)(4) of the Securities Exchange Act.

This civil suit is currently pending.

Securities Exchange Act

Rule 17a-4(b)(4) of the Securities Exchange Act specifically requires brokers and broker-dealers to preserve the originals of all communications received and copies of communications they send in relation to their business.

Termination from Arete Wealth Management

On October 11, 2023, Jeff Larson was fired from Arete Wealth Management following allegations that he was “not forthcoming” during a firm investigation.

Investor Disputes

On February 16, 2024, multiple investors filed a dispute alleging that Jeff Larson recommended an unsuitable investment in March 2018. The clients sought $200,000 in damages and received a settlement of $65,000.

In a dispute filed on May 18, 2021, several investors alleged that Jeff Larson made unsuitable investment recommendations. This dispute was settled for $815,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must consult the investor’s profile, which contains information about their tax status, age, and risk tolerance.

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

Background Information

Jeff Larson has passed the following exams:

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

He previously worked for the following firms:

• Arete Wealth Management (CRD#:44856)
• Larson Financial Securities (CRD#:152517)
• Financial Network Investment Corporation (CRD#:13572)
• CRI Securities (CRD#:22589)
• Securian Financial Services (CRD#:15296)

Kurta Law Can Help

If you worked with Jeff Larson 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 that 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.