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FINRA Suspends South Dakota Financial Advisor Jeff Schwebach

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FINRA, the Financial Industry Regulatory Authority, has suspended Jeff Schwebach (CRD#: 1606537), a broker based in South Dakota who most recently was employed by the brokerage firm Independent Financial Group (CRD#: 7717), based in Dell Rapids, South Dakota. His branch office is Schwebach Financial. The suspension, which started July 1, 2019, will last eight months, until February 29, 2020, according to Jeff Schwebach’s BrokerCheck report, which also details numerous complaints against Jeff Schwebach.

A 30-year veteran of the securities industry, Jeff Schwebach worked for five brokerage firms. In addition to Independent Financial Group, he also worked for:

  • Miami-based firm Allegiant Securities L.L.C. (CRD #: 133912)
  • Princor Financial Services Corporation (CRD#: 1137) of Dell Rapids, South Dakota
  • Quest Capital Strategies, Inc. (CRD#: 16783) of Lake Forest, California
  • Pruco Securities Corporation (CRD#: 5685) of Newark, New Jersey

According to his BrokerCheck record accessed on July 22, 2019, Schwebach has three disclosures.

On June 26, 2019, Schwebach was subject to a regulatory disclosure because “he failed to obtain proper approval from his firm before engaging in private securities transactions with Woodbridge Wealth.”

On June 20, 2018, Schwebach was terminated from Independent Financial Group for failing to accurately disclose the nature of his “Outside Business Activities.”

On April 26, 2018, FINRA suspended Schwebach for “[engaging] in private securities transactions without providing notice to, or obtaining approval from, his member firm.” The firm prohibited the sale of promissory notes, but, the report goes on to state, “Schwebach sold $895,000 in the promissory notes to investors, many of whom were firm customers, and received $19,534 in commissions in connection with these transactions.” Schwebach had previously disclosed this outside business activity, but he did not categorize it as “private securities transactions.” The promissory notes related to a purported real estate investment fund, which later declared Chapter 11 bankruptcy and was disgorged in the amount of $19,534.00.

If Jeff Schwebach was your broker and you’re concerned about these complaints, don’t hesitate to reach out to the experienced securities attorneys of Fitapelli Kurta. Call (877) 238-4175 for your free consultation or email info@fkesq.com.

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