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Jeffrey Smith Has Two FINRA Sanctions

Jeffrey SmithPublic records published by the Financial Industry Regulatory Authority (FINRA) on September 9, 2016 indicate that former California-based Accelerated Capital Group broker Jeffrey Smith is the subject of a pending FINRA investigation. The securities and investment fraud law firm Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. Smith (CRD# 2400590).

Jeffrey Smith has spent 22 years in the securities industry and was most recently registered with Accelerated Capital Group in Irvine, California (2010-2016). Previous registrations include Longview Financial Group in Costa Mesa, California; Western Growers Financial Services in Irvine, California; Citigroup Global Markets in New York, New York; and Prudential Securities in New York, New York. He is currently not registered with any state or firm.

According to his BrokerCheck report, Jeffrey Smith has received three customer complaints, one regulatory sanction, one pending customer complaint, and one pending FINRA investigation.

In June 2016, FINRA named Jeffrey Smith in an investigation into allegations involving “pre-signed forms.” The investigation remains pending.

In May 2016, a party of customers alleged Jeffrey Smith, while employed at Accelerated Capital Group, acted negligently, breached his fiduciary duty, executed excessive trades, violated securities laws, breached contract, committed fraud, and failed to supervise. The customers are seeking $750,000 in the pending complaint.

In 2013, a customer alleged Jeffrey Smith, while employed as branch manager at Accelerated Capital Group, misrepresented material facts. The complaint settled for $4,000.

In 2011, FINRA sanctioned Jeffrey Smith following allegations he failed to enforce his member firm’s written supervisory procedures and “failed to effectively supervise the activities of the associated persons over whom he had supervisory responsibility,” including the failure to prevent associated persons from sending subscription documents directly to a private placement issuer, “precluding the firm from conducting adequate oversight or review of the transactions.” He was issued a 20-day suspension from acting with any FINRA member in a principal capacity.

In 1995, a customer alleged Jeffrey Smith, while employed at Prudential Securities, breached his fiduciary duty, made material misrepresentations, and failed to supervise. The complaint settled in 1997 for $51,000.

FINRA Rule 3110(a)(2) requires broker-dealer firms to assign “an appropriately registered principal(s)” to perform supervisory duties for every type of  business the firm conducts. Principals are required to ensure the compliance of individual representatives as well as the firm as a whole. Relevant issues include the representatives’ character and qualifications, outside employment, and regulation of business transactions. Representatives may not engage in outside business activities or securities transactions without providing written notice to their supervising principals. Principals who fail in their supervisory duties may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.

If you have suffered losses while investing with Jeffrey Smith, you may be entitled to a recovery. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we suggest you avoid delay. Call 877-238-4175 now to speak to an attorney for free.