Paul Jacobs, a McDonough, Georgia-based Cape Securities broker has been sanctioned by the Financial Industry Regulatory Authority (FINRA). FINRA alleged that Mr. Jacobs failed to establish and maintain a system to supervise the activities of his firm so as to achieve compliance with relevant securities laws and regulations. FINRA stated that Jacobs “failed to monitor for, detect and, when detected, investigate multiple instances of potential misconduct by the firm’s brokers involving unsuitable active trading investment strategies, unsuitable ETFs, discretionary trading without written authorization and excessive trading/churning in multiple customer accounts. In addition, Jacobs failed to implement a reasonable supervisory system to adequately review trades for unsuitable recommendations, such as ETFs, and to adequately monitor whether the firm’s representatives understood the risks and benefits of active trading investment strategy they were recommending. This grossly inadequate supervisory system resulted in many firm customers suffering significant losses and paying staggering commissions and fees.” For this, he was suspended for six months from acting as a Series 24 principal.
According to his FINRA BrokerCheck page, Jacobs was previously registered with Ameriprise, New England Securities, Investment Professionals, LPL Financial, Waddell & Reed, Veritrust Financial and Caldwell International Securities. He is currently registered with Cape Securities in McDonough, Georgia and has been since February 2017. He has one customer dispute against him and one criminal disposition. Please call our Chicago-based law firm today if you suffered losses with Mr. Jacobs. We may be able to sue his firm, Cape Securities, on a contingency fee basis to help you recover financial losses. The call is free with no obligation.
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