Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Jeffrey Larson (Larson) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Larson was employed by Arete Wealth Management, LLC at the time of the activity. If you have been a victim of Larson’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a pending customer complaint on January 17, 2025.
Jeff Larson violated Exchange Act Sections 15(a) and 10(b) [15 U.S.C\, \\u00a7\\u00a7 78o(a) and 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. \\u00a7 275.10b-5];\, violated Section 17(a) of the Securities Act of 1933 (‘Securities Act’) [15\, U.S.C. \\u00a7 77q(a)]; violated Advisers Act Sections 206(1) and 206(2) [15\, U.S.C. \\u00a7\\u00a7 80b-6(1) and 80b-6(2)] or, in the alternative, aided and abetted\, Arete Advisors’ violations of Advisers Act Sections 206(1) and 206(2) [15\, U.S.C. \\u00a7\\u00a7 80b-6(1) and 80b-6(2)]; and aided and abetted Arete Wealth’s\, violations of Exchange Act Section 17(a) [15 U.S.C. \\u00a7 78q(a)] and Rule 17a-4\, thereunder [17 C.F.R. \\u00a7 240.17a-4];
FINRA BrokerCheck shows a settled customer complaint with a damage request of $200,000.00 on February 16, 2024.
Clients allege unsuitable investment recommendation in March 2018
We have a strong track record of advocating for victims of fraud when advisors obtain loans from clients or engage in securities sales via OBAs. The practice of selling unapproved investments, promoting fraudulent schemes to hide misused funds, and engaging in other deceptive acts is known in the industry as “selling away,” a major infraction of securities laws. In finance, “selling away” occurs when a financial advisor recommends investments in companies, promissory notes, or other securities without the approval of their broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. To adequately supervise their brokers, firms must implement systems that track advisors’ activities and communications with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Larson has been in the securities industry for more than 19 years. Larson has been registered as a Broker with Arete Wealth Management, LLC since 2017.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
