Jeremy Jefferson Jacobson, of Metairie, Louisiana, a stockbroker registered with LPL Financial LLC, has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Jacobson engaged in discretionary trading. Letter of Acceptance, Waiver, and Consent No. 2021071954502 (June 6, 2023).
According to the AWC, through a July 2, 2021 Uniform Termination Notice for Securities Industry Registration (Form U5) filed by LPL Financial LLC, FINRA learned that Jacobson chose to end his stockbroker registration with the company. Four days later, in an updated Form U5, LPL identified that at the time of Jacobson’s termination, he was being internally reviewed for a commission sharing arrangement with someone.
During that time, LPL had established written procedures that mandated for stockbrokers to get customer permission before making trades and disallowed stockbrokers from engaging in trading in customer brokerage accounts without authorization. From February to May of 2021, Jacobson made 24 trades worth approximately $1,100,000.00 in accounts of customers A, B, and C. The regulator indicated that Jacobson failed to disclose the trades with the customers or get their authorization.
Also, in February of 2021, Jacobson made two trades in customer A’s LPL account valued at $85,700. From February to May of 2021, Jacobson made 20 trades in customer B’s account with a total value of $1,080,000.00. In April of 2021, Jacobson made two trades in customer C’s LPL account with a total value of approximately $6,500. However, Jacobson failed to get permission or consent from customers to make these trades. Therefore, FINRA found that Jacobson violated Rule 2010.
Jacobson was registered with LPL Financial LLC as a stockbroker between May 22, 2013, and July 2, 2021.
