The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Jason Klabal. According to his publicly available FINRA BrokerCheck report, Jason Klabal has been the subject of multiple customer disputes.
Jason Klabal was a New York based securities broker. He worked in the securities industry for nineteen years. During his career, he was registered with nine different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- First Metropolitan Securities (1997)
- Prime Charter (1998)
- Janssen-Meyers Associates (1998)
- AIBC Investment Services Corporation (1998)
- J.P. Turner & Company (1999-2008)
- Mercer Capital (2008-2010)
- Buckman, Buckman & Reid (2010-2011)
- Legend Securities (2011-2016)
- Alexander Capital (2016-2017)
The Allegations
- In March 2001, a customer alleged that Jason Klabal executed unsuitable transactions. This case was settled for $9,500 in damages.
- In January 2014, a customer alleged that Jason Klabal churned their account, made material misrepresentations, breached his fiduciary duty, handled their account negligently, and breached contract. This case was settled for $50,000 in damages.
- Also in January 2014, a customer alleged that Jason Klabal churned their account, charged them excessive commissions, made unsuitable recommendations, and handled their account negligently. This case was settled for $6,500 in damages.
- Also in January 2014, a customer alleged that Jason Klabal churned their account, breached his fiduciary duty, made material misrepresentations, handled their account negligently, and breached contract. This case was settled for $85,000 in damages.
- In May 2014, a customer alleged that Jason Klabal churned their account, charged them excessive commissions, made unsuitable investment recommendations, and handled their account negligently. This case went to arbitration where the customer was awarded $41,566 in damages.
- In November 2014, a customer alleged that they were not made fully aware the details of their margin account. This case was settled for $20,000 in damages.
- In April 2015, a customer alleged that Jason Klabal misappropriated funds, churned his account, breached his fiduciary duty, and was negligent in the management of his account. This case was settled for $50,000 in damages.
- In November 2016, a customer alleged that Jason Klabal engaged in fraud, churned their account, engaged in excessive margin trading, over-concentrated their account, breached his fiduciary duty, breached contract, and negligently managed their account. This case was settled for $20,000 in damages.
- In December 2016, a customer alleged that Jason Klabal churned their account, made material misrepresentations, breached his fiduciary duty, managed their account negligently, and breached contract. This case is currently pending. The customer is seeking $200,000 in damages.
Jason Klabal was eventually barred by FINRA from acting as a securities broker in any fashion.
Churning
One of the most noteworthy allegations levied against Jason Klabal was that of churning. This is a fraudulent trading practice that occurs when a securities broker engages in the excessive trading of an investor’s account. Securities brokers are compensated for their services in two different ways. One is by charging the investor a flat fee that is determined by the value of their account. The other is by receiving a percentage of the investor’s principal investment as their commission whenever they execute a trade on their behalf. This method of compensation leads to churning. This trading practice occurs when a less than scrupulous securities broker trades an investor’s account excessively with the express intent of generating more commissions for themself. Churning can be detrimental to investors due to the sales charges that rack up and cause the investor’s principal to deteriorate.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation, if you, or someone you know, have lost money investing with Jason Klabal, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
