Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Jesse Krapf (Krapf), previously associated with Spartan Capital Securities, LLC, has at least one disclosable event. These events include one tax lien, alleging that Krapf recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on October 30, 2024.
Without admitting or denying the findings, Krapf consented to the sanction[s] and to the entry of findings that he willfully violated the Best Interest Obligation under Rule 15l-1 of the Securities Exchange Act of 1934 (Regulation BI) by recommending a series of trades in a senior customer’s account that were excessive, unsuitable, and not in the customer’s best interest. The findings stated that the customer relied on Krapf’s advice and routinely followed his recommendations. As a result, Krapf exercised de facto control over the account. Krapf recommended in-and-out trading to the customer, even when the price of his recommended securities did not materially change. Krapf’s trading in the customer’s account generated total trading costs of $96,496, including $92,847 in commissions, and caused $41,017 in total realized losses.
