Jeremy Joseph Drake – 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 Jeremy Joseph Drake.
BrokerComplaints.com is currently investigating allegations related to Jeremy Joseph Drake. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Jeremy Drake
Jeremy Joseph Drake is an Investment Adviser. Jeremy Joseph Drake’s Central Registration Depository (CRD) number is 4845025 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/4845025.
Click here to download a Detailed Audit Report for Jeremy Joseph Drake.
Jeremy Joseph Drake 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 Jeremy Joseph Drake’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 8/12/2019
- Disclosure Type: Regulatory
- Resolution: Final
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC Admin Release IA Release 5318 / August 12, 2019: The Securities and Exchange Commission deems it appropriate and in the public interest that public administrative proceedings be instituted against Joseph Drake ( espondent\ or \Drake\). After an investigation, the Division of Enforcement alleges that on December 14, 2018, a final judgment was entered by consent against Drake, permanently enjoining him from future violations of Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Jeremy Joseph Drake, Civil Action Number 2:17-cv-06204-CAS-GJS, in the United States District Court for the Central District of California. INVESTMENT ADVISERS ACT OF 1940 Release 5909 / November 16, 2021: The Commission\u2019s complaint alleged that, while employed by a registered investment adviser, Drake defrauded a married couple by deceiving them about the investment advisory fees they were paying. The complaint alleged that Drake deceived the couple for more than three years, telling them that they paid a special \u201cVIP\u201d annual rate of 0.15 to 0.20 percent of their assets under management when in fact they were paying 1 percent. The complaint further alleged that Drake\u2019s deception led the couple to pay $1.2 million more in management fees than Drake represented, a portion of which Drake received as compensation. On March 22, 2019, Respondent Drake pled guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343 before the United States District Court for the Central District of California, in United States v. Jeremy Joseph Drake, Criminal Docket No. CR18-58 CAS. On March 28, 2019, a judgment in the criminal case was entered against Drake. He was sentenced to a prison term of 30 months followed by three years of supervised release and ordered to make restitution in the amount of $1,228,912.20. On June 24, 2021, following an appeal, Respondent\u2019s restitution obligation was reduced by the district court, pursuant to a stipulation entered into with the Government, by $327,847.28. The count of the criminal information to which Drake pled guilty alleged, inter alia, that Drake defrauded the married couple by misrepresenting that they were paying a 0.15% to 0.20% annual asset management fee when, in fact, they paid an annual 1.00% fee.
- Resolution: Order |Sanctions: Bar (Permanent) |Registration Capacities Affected: broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO
- Duration: Indefinite
- Start Date: 11/16/2021
DISCLOSURE 2 –
- Event Date: 8/22/2017
- Disclosure Type: Civil
- Resolution: Final
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: The Securities and Exchange Commission alleges that this action concerns an investment adviser who, in violation of his fiduciary duties, deceived his clients about the advisory fees they were paying. At all relevant times, Defendant Jeremy Joseph Drake (\Drake\) was an investment adviser representative of HCR Wealth Advisors (\HCR\), a registered investment adviser in Los Angeles. From November 2012 until July 2016, Drake deceived two clients, a married couple holding joint accounts (\the Clients\ or \Mr. A\ and \Ms. A\), about the annual management fees they were paying HCR. Drake told the Clients, a high-profile professional athlete and his spouse, that they were being charged a special, VIP rate of between 0.15% and 0.20% of their assets under management, when, in fact, they were being charged and paying 1.0%. During the course of Drake’s deception, the Clients paid approximately $1.5 million in management fees – over $1.2 million more than Drake represented to the Clients that they were paying – and Drake received approximately $900,000 of those fees as incentive-based compensation. Drake perpetrated this deception by repeatedly lying to the Clients and their representatives in person, in text messages, and over the telephone. He also sent the Clients and their representatives false and misleading emails, deceptive management fee reports, and a number of fabricated documents to corroborate his lies. The fabricated documents that Drake sent included falsified account statements of the brokerage firm where Clients’ securities were held and a falsified investment advisory agreement from HCR. Drake also used a fake email address – which he said belonged to a manager at the Clients’ brokerage firm – to send more deceptive emails and false documents concerning the Clients’ fees, and persuaded a confederate to pose as a manager at the Clients’ brokerage firm and corroborate his story. In so doing, Drake violated the fiduciary duties that he owed to the Clients. By engaging in this conduct, Drake violated Sections 206(1) and 206(2) of the Advisers Act, or, in the alternative, aided and abetted HCR’s uncharged violations of those provisions.
- Resolution: Judgment Rendered |Sanctions: Injunction
- Sanctions: permanently restrained
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.
- MORGAN STANLEY & CO. INCORPORATED (CRD#: 8209) :: 4/2/2007 – 3/16/2009 :: TORRANCE, CA
- MORGAN STANLEY DW INC. (CRD#: 7556) :: 1/26/2007 – 4/2/2007 :: TORRANCE, CA
- UBS FINANCIAL SERVICES INC. (CRD#: 8174) :: 10/22/2004 – 2/6/2007 :: BEVERLY HILLS, CA
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 Jeremy Joseph Drake, 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 Jeremy Drake
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Jeremy Joseph Drake – 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 (4845025) for the broker – Jeremy Joseph Drake
- 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.