Errant ex-advisor who lost clients almost $2M hit with 10-year prohibition

Errant ex-advisor who lost clients almost $2M hit with 10-year prohibition
Former advisor reportedly put his clients in unsuitable private placements and misappropriated part of a senior client’s $675K investment, among other breaches.
JUL 01, 2024

The SEC has handed down a 10-year prohibition against an investment advisor who it said lost his clients millions of dollars after putting them in private placements that were unsuitable for them.

According to the order published June 27, Jacob Glick is a former investment adviser representative with Advanced Practice Advisors. He was associated with the firm from September 2015 to June 2017, when he was terminated for what APA described as "reckless disregard for determining client suitability."

Following his termination, Glick registered IGA Capital, a registration he later withdrew in May 2018. He has since ceased working in the securities industry and resides in Scottsdale, Arizona.

The SEC cited a district court decision dated August 16, 2022 against Glick, which found he violated the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940.

According to the regulator’s complaint relating to the case, Glick used his discretionary authority to place clients in unsuitable and risky investments between mid-2016 and mid-2018, leading to losses of almost $2 million.

A disclosure note on Glick’s BrokerCheck profile detailed how he breached his fiduciary duty by failing to disclose risks around investing in stock options, as opposed to stocks, and invested elderly clients primarily in Rite Aid shares and options.

“Glick's unsuitable investments in RAD resulted in over $1 million in realized and unrealized losses for the clients advised by Glick,” the note raid.

He was also accused of making material misrepresentations to clients and misappropriating their investments in a private placement offering. He tried to hide the losses from those private placements by “[engaging] in a scheme to defraud,” the SEC said.

In one instance, the regulator said Glick obtained over $675,000 from an elderly client, part of which he placed in an unsuitable long-term property. He reportedly used her remaining funds to pay off personal debts, including obligations to advisory clients he had persuaded into investing in his private placement offering.

The complaint also detailed how Glick advised clients via text messages on his personal cellphone, then sold the phone without preserving client communications despite repeated instructions from APA to do so.

Without admitting to or denying the SEC’s findings, Glick agreed to be barred from the industry for 10 years, after which he can apply for reentry.

Latest News

Investing for accountability: How to frame a values-driven conversation with clients
Investing for accountability: How to frame a values-driven conversation with clients

By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.

Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak
Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak

JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.

Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’
Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’

Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.

SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation
SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation

The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.

RIA moves: Wells Fargo pair joins &Partners in Virginia
RIA moves: Wells Fargo pair joins &Partners in Virginia

Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.