Colton Jacob Suspended and Fined by FINRA

Colton Jacob (CRD# 6602283[1]), formerly a broker registered with Steward Partners, participated in an unapproved outside business activity, according to a disciplinary action. MDF Law is investigating the former Austin, Texas-based financial professional for similar conduct. If you have concerns about investments in your accounts, contact us for a free, confidential consultation.

To learn more about the allegations against Mr. Jacob, continue reading this post. The information below is based on a November 20, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record. 

Sanction Alleges Improper Outside Business Activity

On October 21, 2024, FINRA released a Letter of Acceptance, Waiver, and Consent (# 2023077754402[2]) concerning Mr. Jacob. The Letter described allegations that he participated in an outside business activity between February and December 2022. As part of the activity, he allegedly assisted in “fundraising and strategic planning for two related companies.”

Among other things, according to FINRA, he “contacted or met with multiple individuals,” including at least one customer of his member firm. He provided the individuals with information “about the companies and their business,” FINRA found. He also allegedly used an email account provided by the companies, with the email’s signature describing him as an executive. “In anticipation of receiving compensation” for his alleged participation in the activity, he “discussed an equity stake in one of the companies and agreed to be enrolled in payroll software,” FINRA found.

Broker Suspended, Fined over Alleged Rule Violations

FINRA concluded that Mr. Jacob’s alleged activities violated FINRA Rule 3270. According to this rule, brokers may not participate in outside business activities without providing written notice to their member firm. Mr. Jacob allegedly did not provide such to either of his member firms during the period in question. Furthermore, he allegedly failed to receive their prior approval for the activities, as required by their rules. FINRA concluded that he also violated FINRA Rule 2010, which requires brokers to “observe high standards of commercial honor and just and equitable principles of trade.”

As a result of these findings, the regulator suspended him from associating with any member firm for 45 days. It also ordered him to pay a fine of $5,000.

Why Did Steward Partners Fire Colton Jacob?

On December 28, 2022, Steward Partners Investment Solutions fired Mr. Jacob. According to a disclosure on his BrokerCheck report, his termination stemmed from allegations that he “violated Firm policies regarding outside business activities.”

FINRA: Broker Last Based in Austin, Texas

Mr. Jacob launched his career as a broker when he joined AXA Advisors in Austin, Texas. He worked at a variety of firms over the following years, including Wells Fargo and Raymond James. He joined his most recent member firm, Steward Partners, in 2022, and remained at its Austin, Texas branch office until 2023. With six years of experience as a broker, he has completed four industry exams, including the Series 66 and the Series 63. 

Call MDF Law to Speak with an Attorney

If you are a current or former customer of Colton Jacob with concerns about your investments, call MDF Law for a free, confidential consultation. If you experienced losses in your accounts, you may have grounds to pursue a recovery through the FINRA arbitration process. Contact us today, especially if any of the following conditions apply:

• You lost more than you could afford to lose;
• Your portfolio was concentrated in a single investment or sector;
• Your broker did not fully disclose the risks of investments in your accounts;
• Trades in your accounts resulted in undisclosed fees or charges.

MDF Law’s seasoned investor advocates[4] take cases on a contingency basis. That means we only receive a fee when our clients win—no hourly fees. Call 800-767-8040 to speak with our team today.