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Jay Gruenbaum: Attorney Investigation

Jay GruenbaumPublic records published by the Financial Industry Regulatory Authority (FINRA) on September 18, 2016 indicate that former Ohio-based Stifel Nicolaus broker Jay Gruenbaum is currently unaffiliated with any broker-dealer firm. The securities and investment fraud law firm Fitapelli KUrta is interested in speaking to investors who have complaints regarding Mr. Gruenbaum (CRD# 2351888).

Jay Gruenbaum has spent 22 years in the securities industry and was most recently registered with Stifel Nicolaus & Company in Zanesville, Ohio (2013-2016). Previous registrations include Merrill Lynch in Zanesville, Ohio; AG Edwards & Sons in Zanesville, Ohio; and JJB Hilliard WL Lyons in Louisville, Kentucky. He is currently not registered with any state or firm.

According to his BrokerCheck report, Jay Gruenbaum has received two pending customer complaints and was discharged from Stifel Nicolaus & Company.

In May 2016 a customer alleged Jay Gruenbaum, while employed at Stifel Nicolaus & Company, “advised that she ‘would never run out of money’, purchased aggressive stocks and sold options without fully informing her of the risks, and offered the customer $300 in cash to make it easier for the customer to decrease her monthly IRA distributions.” The customer is seeking unspecified damages in the pending complaint.

In May 2016 Jay Gruenbaum was terminated from his position at Stifel Nicolaus & Company following allegations he made “unauthorized payments to clients.”

In April 2016 a customer alleged Jay Gruenbaum, while employed at Stifel Nicolaus & Company, “promised monthly withdrawals from the client’s account for life, made unsuitable recommendations using margin, mailed the client a $100 gift card, $100 in cash, and a bank check for $610 from registered representative’s own personal funds, and… stated that he would give the client a $100 gift card each month for 1 year.” The customer is seeking $50,000 in damages in the pending complaint.

In 2013 a customer alleged Jay Gruenbaum, while employed at Merrill Lynch, misrepresented material facts and made unsuitable investment recommendations. The customer sought $150,000 in damages in the complaint, which was denied.

Margin” refers to the practice of borrowing funds from one’s broker to purchase a security, with that security itself used as collateral in the transaction. There are many benefits to purchasing securities on margin, chiefly the increase of purchasing power that allows investors to buy more securities without completely paying for them. There are also many risks, chiefly the increase in potential for significant losses. Brokers, investment advisers, and broker-dealer firms who unsuitably recommend investments on margin may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.

If you or someone you know has lost money investing with Jay Gruenbaum, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: Fitapelli Kurta only gets paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.