Jonathan Michael Sheklow of New York New York a stockbroker formerly registered with Global Arena Capital Corp has been suspended on May 23, 2016 from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to pay a $151,373.17 award to a customer after a FINRA Arbitration Panel found Sheklow and Global Arena Capital liable on the customer’s claims that (1) contractual obligations had been breached (2) the customer’s account was handled in a negligent manner (3) unauthorized and excessive trades were effected in the customer’s account and (4) transactions were effected by Sheklow and Global Arena Capital Corp in violation of Securities Exchange Act of 1934. FINRA Arbitration No. 15-00742 (Feb. 19, 2016).
This is not the first time that Sheklow has been sanctioned by FINRA. Indeed, Sheklow was already barred by FINRA in all capacities according to an Order Accepting Offer of Settlement containing findings that Sheklow engaged in the fraudulent sale of $3,000,000.00 worth of Metals, Milling and Mining LLC Senior Secured Zero Coupon Notes. Department of Enforcement v. Jonathan Michael Sheklow et al. Disciplinary Proceeding No. 2010024522103 (July 1, 2015).
According to the Order, Sheklow, inter alia, made fraudulent misrepresentations to fifty-nine customers, where he claimed that the offering would provide customers a one hundred percent investment return. FINRA revealed that the customers who invested through Sheklow lost all their money except for those investors repaid with other investors’ funds in a manner not dissimilar to a Ponzi scheme. FINRA found Sheklow’s conduct violative of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and FINRA Rules 2010 and 2020.
FINRA Public Disclosure reveals that Sheklow is referenced in three more customer initiated investment related disputes pertaining to allegations of his violative conduct during the time that he was associated with Global Arena Capital and HFP Capital Corp. Specifically, a customer initiated investment related arbitration claim involving Sheklow’s activities was settled for $20,000 in damages supported by accusations that unauthorized and unsuitable trades were effected in the customer’s account; fiduciary duties owed to the customer had been breached; the customer’s account was churned; and the customer had been defrauded in regard to the customer’s investments in corporate debt products. FINRA Arbitration No. 13-01400 (Jan. 23, 2014).
Then, a customer filed an investment related arbitration claim concerning Sheklow’s conduct in which the customer requested $26,000.00 in damages based upon allegations of breach of fiduciary duty, breach of contract, and gross negligence in regard to the placement of over-the-counter equities and corporate debt investments in the customer’s portfolio. Subsequently, Sheklow was named in a customer initiated investment related arbitration claim where the customer was awarded $32,517.00 in compensatory damages based upon findings that Sheklow, inter alia, breached his fiduciary duties to the customer, effected unsuitable transactions in the customer’s account, and gave the customer bad advice. FINRA Arbitration No. 16-00441 (Feb. 10, 2017).
