Jason Harris Klabal of New York New York a stockbroker formerly employed by Legend Securities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that Klabal neglected to cooperate with a FINRA inquiry which may have concerned customer disputes that were filed by customers of Legend Securities. Case No. 2015047602802 (Feb. 12, 2018).
According to FINRA Pubic Disclosure, Klabal failed to respond to FINRA’s request for information. Klabal was eventually sent a Notice of Suspension from FINRA dated November 9, 2017 and a Suspension from Association letter from FINRA on December 4, 2017. To end the suspension, Klabal was required to provide FINRA information no later than February 10, 2018, otherwise he would be barred automatically by February 11, 2018. Klabal failed to correspond with the regulator by the stated deadline.
FINRA Public Disclosure confirms that Klabal has been identified in eleven customer initiated investment related disputes containing allegations of his violative conduct while employed by securities broker dealers including Legend Securities Inc. Specifically, Klabal was subject of a customer initiated investment related arbitration claim in which the customer was awarded $39,488.40 in compensatory damages based upon Klabal being found liable on the customer’s claims which included Klabal selling bad investments, excessively trading, mismanaging the customer’s securities portfolio, misrepresenting options and equipment leasing investments, and breaching a fiduciary obligation to the customer. FINRA Arbitration No. 14-01705 (July 8, 2015).
Another customer initiated investment related arbitration claim in regard to Klabal’s activities was resolved for $50,000.00 in damages supported by accusations that Klabal breached his fiduciary duties; negligently transacted in the customer’s account; misappropriated funds; and churned the customer’s options and equities holdings while employed by Legend Securities Inc. FINRA Arbitration No. 15-00484 (Aug. 12, 2016). Klabal is also referenced in a customer initiated investment related arbitration claim where the customer sought $200,000.00 in damages based upon allegations that contractual obligations had been violated; Klabal engaged in negligent trading of the customer’s investment account; fiduciary duties were breached; the customer’s investment portfolio was churned; and unfounded statements had been made concerning common and preferred stock transactions. FINRA Arbitration No. 16-03549 (Dec. 8, 2016).
Another customer initiated investment related arbitration claim concerning Klabal’s conduct was settled for $20,000.00 in damages based upon accusations of negligence, breach of contract, violation of fiduciary duties, over-concentration, inappropriate margin use, fraudulent activities, and churning of the customer’s over-the-counter equities positions. FINRA Arbitration No. 16-03029 (Dec. 22, 2016).
Klabal’s employment with Legend Securities Inc. was terminated on June 6, 2016.
