Jeffrey Arsenault Subject of SEC Civil Suit Alleging Misappropriation

Jeffrey Arsenault (CRD #: 1506180), a broker formerly registered with J. Alden Associates, is involved in a pending SEC civil suit, according to his BrokerCheck record, accessed on November 7, 2024. Keep reading to learn more about his alleged conduct as a broker.

Termination from J. Alden Associates

On October 17, 2024, Jeffrey Arsenault was fired from J. Alden Associates following the filing of an SEC civil suit alleging misappropriation of client assets.

FINRA Rule 2150

FINRA Rule 2150 prohibits the improper use of investors’ funds.

FINRA Rule 2010

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

SEC Civil Suit

On October 11, 2024, the Securities and Exchange Commission filed a civil suit against Jeffrey Arsenault, Old Greenwich Capital Advisors, and OGCP Management Company. Jeffrey Arsenault allegedly owned these investment advisory firms as well as the investment fund Old Greenwich Capital Partners (the OGCP Fund).

The SEC alleged that Jeffrey Arsenault and the OGCP Fund faced financial difficulties due to the market downturn of 2008, resulting in his partner splitting from the OGCP Fund and taking a significant portion of its managed assets and Jeffrey Arsenault’s house entering foreclosure.

Jeffrey Arsenault and Old Greenwich Capital Advisors allegedly misappropriated investors’ money from the OGCP Fund to pay for his lifestyle and to make unauthorized payments to the firm and Jeffrey Arsenault’s other business ventures. He allegedly diverted millions of dollars from the OGCP Fund and the OGCP Four Seasons Fund through the investment advisers he controlled, draining these funds of almost all of their assets from 2014 to 2024.

Further, Jeffrey Arsenault and these firms allegedly fraudulently misrepresented the value of the OGCP Funds’ holdings in account statements and tax documents, and by overstating the interest the OGCP Fund held in the Four Seasons Fund. The defendants allegedly claimed that the missing assets had been reinvested in the Four Seasons Fund even after it had closed down.

Lastly, the SEC alleged that the defendants misled investors into believing their losses were due to bad investments rather than their misappropriation. The SEC alleged that Jeffrey Arsenault and the other defendants misappropriated more than $4.1 million from October 2014 to the present.

This civil suit is currently pending.

SEC Regulatory Action

On October 11, 2024, the SEC initiated a regulatory action concerning allegations that Jeffrey Arsenault misappropriated $4.1 million in client assets. This action is pending.

Background Information

Jeffrey Arsenault has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

He previously worked for the following firms:

• J. Alden Associates (CRD#:40002)
• FNEX Capital (CRD#:166316)
• MCG Securities (CRD#:163144)
• Grace Financial Group (CRD#:104133)
• TradeRight Securities (CRD#:45598)
• Paradigm Capital U.S. (CRD#:104425)
• CIBC World Markets (CRD#:630)
• CIBC Wood Gundy Securities (CRD#:3801)
• Yorkton Capital (CRD#:38108)
• Gordon Capital (CRD#:6947)
• Krupp Securities Corporation (CRD#:10908)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
• Dean Witter Reynolds (CRD#:7556)

Kurta Law Can Help

If you worked with Jeffrey Arsenault 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.