Jeff Alan Katz – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Jeff Alan Katz.
BrokerComplaints.com is currently investigating allegations related to Jeff Alan Katz. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Jeff Katz
Jeff Alan Katz is an Investment Adviser. Jeff Alan Katz’s Central Registration Depository (CRD) number is 1321299 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1321299.
Click here to download a Detailed Audit Report for Jeff Alan Katz.
Jeff Alan Katz has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Jeff Alan Katz’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 9/28/2011
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: NEVADA
- Allegations: FROM AUGUST 1, 2009 THROUGH SEPTEMBER 30, 2011, KATZ RECEIVED FIFTEEN (15) TRANSACTION BASED PAYMENTS TOTALING THIRTY FIVE THOUSAND EIGHT HUNDRED NINETY ONE DOLLARS AND TWENTY CENTS ($35,891.20) ON SECURITIES BUSINESS GENERATED FROM THRITY-EIGHT (38) SALES TO TWENTY-SEVEN (27) CLIENTS THROUGH KCD’S LAS VEGAS NEVADA OFFICE. KATZ WAS NOT LICENSED AS A SALES REPRESENTATIVE IN NEVADA.
- Resolution: Consent
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $62,445.66
- Broker Comment: THE VIOLATION OCCURRED AS A RESULT OF A CONTRACT PROVISION THAT WAS CREATED BY A PREVIOUS OWNER OF THE FIRM (NOW DECEASED). FOLLOWING ACQUISITION, THE NEW OWNERS OF THE FIRM WERE UNABLE TO LOCATE ANY REFERENCES TO THE OFFENDING PROVISION AS THE PREVIOUS OWNER HAD RETAINED THE AGREEMENT IN THE REP FILE. BOTH THE FIRM AND THE NEVADA REGISTERED REPRESENTATIVE WERE APPROPRIATELY LICENSED IN NEVADA. THE OTHER TWO REGISTERED REPRESENTATIVES SUBJECT TO THE FINE (LICENSED IN ARIZONA BUT NOT NEVADA) WERE COLLECTING RECRUITING OVERRIDES FROM THE NEVADA LICENSED REGISTERED REPRESENTATIVE. UPON RECEIVE OF NOTIFICATION, THE FIRM REVERSED THE OVERRIDES PAID TO THE RR’S (AND THE FIRM) AND REMITTED $62,445.66 TO THE STATE OF NEVADA, THUS RESOLVING THE ISSUE. THE AMOUNT ASSESSED TO THE FIRM WAS $20,000 AND THIS INDIVIDUAL’S ASSESSED AMOUNT WAS $35,891.20.
DISCLOSURE 2 –
- Event Date: 7/21/2000
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C02000042
- DocketNumberAAO: 02000042
- Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
- Allegations: NASD RULES 2110 AND 2120 – RESPONDENT KATZ, INTENTIONALLY OR RECKLESSLY EMPLOYED DEVICES TO DEFRAUD A PUBLIC CUSTOMER BY MAKING UNTRUE STATEMENTS OF MATERIAL FACTS AND/OR OMITTING TO STATE MATERIAL FACTS IN THAT IN CONNECTION WITH THE CUSTOMER’S PURCHASE OF CERTIFICATES OF DEPOSIT (CD)IN HIS FAMILY TRUST ACCOUNT, KATZ ENGAGED IN THE FOLLOWING MISCONDUCT: FAILED TO DISCLOSE THAT ONLY A PORTION OF THE CUSTOMERS’ FUNDS WOULD ACTUALLY BE SENT TO THE BANK TO BE INVESTED IN THEIR CD; PRESENTED AN OFFER SHEET TO THE CUSTOMER AT THE TIME OF THEIR PURCHASE WHICH INFERRED THAT THE FULL PRINCIPAL AMOUNTS PAID BY THE CUSTOMERS WOULD BE FDIC INSURED WHEN, IN FACT, A PORTION OF THE FULL PRINCPAL AMOUNTS PAID BY THE CUSTOMERS WOULD BE TAKEN OUT AS COMMISSIONS AND FEES AND, THEREFORE, WOULD NOT RECEIVE FDIC PROTECTION IN THE EVENT OF BANK FAILURE PRIOR TO THE MATURITY OF THE CUSTOMER’S CD; FAILED TO DISCLOSE THAT CD’S PURCHASED BY THE CUSTOMER EXCEEDED FDIC INSURANCE PROTECTION AND THEREFORE ON A DATE PRIOR TO MATURITY WOULD BE UNINSURED; DISTRIBUTED TO THE CUSTOMER A DOCUMENT WHICH FALSELY REPRESENTED TO THE CUSTOMER THAT KATZ’S COMMISSION WOULD BE PAID BY AN ENTITY IDENTIFIED IN THE DOCUMENT AS THE \INSTITUTION\ WHEN IN FACT, THE CUSTOMER WAS CHARGED COMMISSIONS AND CUSTODIAL FEES; FAILED TO DISCLOSE THAT THE COMMISSIONS AND FEES CHARGED WOULD BE TAKEN \UP FRONT\ FROM THE CUSTOMER’S PRINCIPAL AND NOT FROM THE EARNING ON HIS INVESTMENTS; FAILED TO DISCLOSE THAT THE CD’S WOULD NOT BE ISSUED IN THE NAME OF HIS FAMILY TRUST AND THAT ANY PROCEEDS PAID BY THE FDIC WOULD NOT BE PAID TO THE CUSTOMER AND THAT THE CUSTOMER WOULD HAVE TO RELY ON THE CUSTODIAL ENTITY TO PROVIDE ANY INSURANCE PROCEEDS TO HIM; PROVIDED THE CUSTOMER A DOCUMENT AND CD RECEIPTS WHICH CONTAINED MISLEADING AND DECEPTIVE INFORMATION; AND FAILED TO ACT DESPITE MISCONDUCT WHICH KATZ EITHER KNEW, OR WAS RECKLESS IN KNOWING, WAS TAKING PLACE.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s) Sanctions: Suspension
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT KATZ CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE HE IS SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR 90 DAYS EFFECTIVE OCTOBER 15, 2001 TO JANUARY 11, 2002, AND FINED $10,000.00. FINES PAID 10/01.
- Broker Comment: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OF THE COMPLAINT, TO THE ENTRY OF FINDINGS AND CONCLUSIONS SET FORTH AND TO THE IMPOSTION OF THE SANCTIONS. AT VARIOUS TIMES DURING THE PERIOD 4/27/99-04/01/00, KATZ, IN CONTRAVENTION OF THE DUTY TO OBSERVE HIGH STANDARDS OF COMMERCIAL HONOR, NEGLIGENTLY EMPLOYED DEVICES IN RELIANCE ON, AMONGST OTHERS, HIS COMPLIANCE OFFICERS ADVICE, WHICH RESULTED IN MISUNDERSTANDINGS. RESULT WAS A 90 DAY SUSPENSION FROM ASSOCIATING WITH ANY NASD MEMBER FIRM IN ANY CAPACITY AND A FINE OF $10,000. PLEASE NOTE:MR. KATZ PREVIOUSLY ANSWERED QUESTIONS 14 D1/D2/D5 IN ERROR. REGARDING QUESTION 14E(1)- THIS QUESTION DOES NOT APPLY SHOULD NOT NEED TO BE ANSWERED BECAUSE OF THE FACT THAT THERE HAS BEEN NO ADMISSION OF WRONG DOING AS STATED IN THE NASD RULING WHICH READS: \WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OF THE COMPLAINT\
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- KCD FINANCIAL, INC. (CRD#: 127473) :: 11/3/2006 – 9/21/2012 :: SUN CITY, AZ
- ING FINANCIAL PARTNERS, INC. (CRD#: 2882) :: 7/3/2002 – 11/3/2006 :: SUN CITY, AZ
- INTERFIRST CAPITAL CORPORATION (CRD#: 7659) :: 4/10/2000 – 7/7/2000 :: LOS ANGELES, CA
- SAN CLEMENTE SECURITIES, INC. (CRD#: 21895) :: 4/27/1999 – 4/10/2000 :: SAN CLEMENTE, CA
- HORNOR, TOWNSEND & KENT, INC. (CRD#: 4031) :: 3/9/1998 – 4/28/1999 :: HORSHAM, PA
- FIRST ALLIED SECURITIES, INC. (CRD#: 32444) :: 11/10/1997 – 3/9/1998 :: SAN DIEGO, CA
- WMA SECURITIES, INC. (CRD#: 32625) :: 1/3/1996 – 11/21/1997 :: DULUTH, GA
- WALNUT STREET SECURITIES, INC. (CRD#: 15840) :: 9/7/1993 – 2/6/1996 :: EL SEGUNDO, CA
- AMEV INVESTORS, INC. (CRD#: 421) :: 10/17/1990 – 12/31/1991 :: OAKDALE, MN
- MONY SECURITIES CORP. (CRD#: 4386) :: 12/23/1985 – 2/6/1990 :: NEW YORK, NY
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Jeff Alan Katz, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Jeff Katz
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Jeff Alan Katz – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (1321299) for the broker – Jeff Alan Katz
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.