Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Jason Kimber (Kimber), currently associated with J.w. Cole Financial, Inc., has at least 6 disclosable events. These events include 6 customer complaints, alleging that Kimber recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $1,000,000.00 on October 03, 2024.
Customers allege that the Firm failed to detect an alleged fraud operated by a now deceased representative away from the Firm. The deceased representative, that is the subject of the complaint, was with the Firm for less than two months and Customers’ alleged purchases of the investments at issue occurred at various times while he was affiliated with differing firms. Customers allege that the Registered Representative was involved in the activities that occurred away from the Firm.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $860,000.00 on June 18, 2024.
Claimants allege that through the registered representative’s unaffiliated DBA, and while affiliated with multiple broker dealers, between July 2014 and June 2022, the representative’s former partner was involved in a fraud. Claimants allege that the registered representative indirectly benefited from the operation, and that he should have identified the operation as a fraud.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $14,400,000.00 on February 26, 2024.
Customers allege that the Firm failed to detect an alleged fraud operated by a now deceased representative away from the Firm. The deceased representative, that is the subject of the complaint, was with the Firm for less than two months and Customers’ alleged purchases of the investments at issue occurred at various times while he was affiliated with differing firms. Customers allege that the Registered Representative was indirectly involved in the activities that occurred away from the Firm.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $7,100,000.00 on February 21, 2024.
Customers allege that the Firm failed to detect an alleged fraud operated by a now deceased representative away from the Firm. The deceased representative, that is the subject of the complaint, was with the Firm for less than two months and Customers’ alleged purchases of the investments at issue occurred at various times while he was affiliated with differing firms. Customers allege that the Registered Representative was indirectly involved in the activities that occurred away from the Firm.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $10,500,000.00 on December 01, 2023.
Customers allege that while affiliated with Allegis Investment Services, LLC, between July 2014 and May 2018, Kimber’s former partner was involved in a fraud. Customers allege that Kimber indirectly benefited from the operation, and that Kimber should have identified the operation as a fraud.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $850,000.00 on April 18, 2023.
Customers allege that the Firm failed to detect an alleged fraud operated by a now deceased representative away from the Firm. The deceased representative, that is the subject of the complaint, was with the Firm for less than two months and Customers’ alleged purchases of the investments at issue with the deceased representative occurred after his departure from the Firm. Customers allege that the Registered Representative was indirectly involved in the activities that occurred away from the Firm.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation is in the retail investor’s best interest.
In addition to specific investments being recommended, under Reg BI, a broker must also understand the type of account that their client would need in order to meet their care obligations. The SEC has stated that the type of securities account an investor has can greatly affect a customers’ costs and overall investment returns. Further, different account types can offer and support different features, products, securities, or services, and account type would not be appropriately applied in a one size fits all manner.
Kimber entered the securities industry in 2013. Kimber has been registered as a Broker with J.w. Cole Financial, Inc. since 2018.
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.
