Marc Nathan Jaffe of Indianapolis Indiana a stockbroker unofficially associated with Integrity Brokerage Services Inc. has been isBring FINRA Arbitration Claim Against an Order Accepting Offer of Settlement by FINRA Office of Hearing Officers in which he has been barred from associating with any FINRA member in any capacity supported by findings that he associated with Integrity while statutorily disqualified. Department of Enforcement v. Integrity Brokerage Services Inc. et al. Disciplinary Proceeding No. 2018056436001 (Nov. 4, 2020).
According to the Order, between February of 2016 and November of 2020, Jaffe was associating with Integrity even though he was not allowed to under FINRA’s statutory disqualification rules. Jaffe was subject of a previous FINRA disciplinary action where he was suspended through December of 2015 but still remained disqualified during the period that Integrity filed an MC-400 application to bring him on board at the securities broker dealer.
In May of 2017, the application submitted by Integrity concerning Jaffe’s registration had been denied because of National Adjudicatory Council determining that the stockbroker engaged in substantial misconduct including securities activities in customer accounts during the period of his disqualification. Since the loss of Jaffe’s accounts would greatly impact Integrity’s bottom line, FINRA stated that Jaffe was permitted by Chief Compliance Officer Joshua Helme to associate with Integrity despite NAC’s decision stating that this was not allowed.
FINRA stated that customers spoke with Jaffe concerning investments held in their accounts. Commissions relating to Jaffe’s transactions had been disguised as analyst-related compensation. The Order indicated that Jaffe was receiving a fixed fee from another Integrity stockbroker Andrea Wood amounting to 40 percent of revenues that Wood derived from investment advisory fees and brokerage commissions. FINRA determined that Jaffe violated FINRA By-Laws Article III Section 3(b) and FINRA Rules 2010 and 1210.
FINRA Public Disclosure reveals that Jaffe has been identified in 34 customer initiated investment related disputes regarding allegations of his violative actions while associated with securities broker dealers including Merrill Lynch Pierce Fenner Smith Inc. and Finance 500 Inc. Jaffe is referenced in a customer initiated investment related arbitration claim in which the customer was awarded $450,000.00 in damages founded on Merrill Lynch and Jaffe being found liable for causing the customer’s losses. The claim alleged that the customer’s account was churned and that unauthorized transactions were effected by the stockbroker. According to the claim, investment recommendations were not suitable for the customer.
Another customer initiated investment related complaint in regard to Jaffe’s conduct was settled for $294,000.00 in damages based upon accusations of unauthorized trading and churning by the stockbroker which led to losses for the customer’s Merrill Lynch account. Jaffe is also the subject of a customer initiated investment related written complaint which was resolved for $80,000.00 in damages supported by allegations of transactions being executed in the Merrill Lynch customer’s account on an excessive and unsuitable basis by the stockbroker. Another customer initiated investment related complaint involving Jaffe’s conduct was settled to resolve accusations that Jaffe placed the Finance 500 customer in badly performing equities.
Jaffe was employed by Finance 500 until September 18, 2015. He was never officially registered as a stockbroker with Integrity.