Finra bars former Stifel broker for unauthorized payments
Finra has permanently barred a former broker who was terminated by his former employer, Stifel, Nicolaus & Co., for making unauthorized payments to clients.
Jay Jules Gruenebaum was investigated by the Financial Industry Regulatory Authority Inc. over two customer complaints on mishandling accounts and certain representations he made to them, as well as the unauthorized payments, according to a settlement notice accepted Monday by Finra’s department of enforcement.
Finra began investigating the former broker after Stifel reported his termination on June 16 this year. On Sept. 12, Mr. Gruenebaum was requested for an on-the-record testimony but he refused to appear. In settling the matter, Mr. Gruenebaum agreed to be barred without admitting or denying Finra’s finding.
“I would point out that the ban was for his unwillingness to travel to DC for an OTR [on-the-record testimony.] He had already decided to leave the industry and did not want to spend additional time and money,” wrote Dennis Concilla, Mr. Gruenebuam’s counsel, in an email.
Mr. Gruenebaum started working at Stifel from March 2013 and was terminated May 23.
Stifel declined to comment.
This was not his first termination of employment. Mr. Gruenebaum was terminated by Merrill Lynch after 6 years of employment for altering client documents on multiple occasions, according to his BrokerCheck profile .
There were also three customer disputes for unsuitable recommendations listed on the former broker’s BrokerCheck profile that have been denied or closed without action.
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