The Zanesville, Ohio-based broker is accused of making unauthorized payments to clients and has been discharged from his member firm
In May 2016, Stifel, Nicolaus & Company, Inc. discharged broker Jay Gruenebaum from its employ alleging that he made unauthorized payments to customers. As a result of his termination, the Financial Regulatory Authority (FINRA) launched an investigation into the circumstances that caused the member firm to take such action.
During its investigation, FINRA requested that Gruenebaum appear for on-the-record testimony, a request which Gruenebuam refused. In October 2016, due to his failure to appear, Gruenebaum was permanently barred by FINRA from acting as a broker or having any association with firms that sell securities.
The discharge from employment from Stifel, Nicolaus & Company was not the first one for Gruenebaum, however. In March 2013, Merrill Lynch Pierce, Fenner & Smith, Inc. also discharged the broker, alleging conduct including altering client documents on multiple occasions and procuring a pre-signed client document, resulting in management’s loss of confidence.
In the most recent years of his career, customer disputes filed against Gruenebaum include complaints of unsuitable investment recommendations and misrepresentation, in addition to making unauthorized payments to clients.
Prior to his employment with Stifel, Nicolaus & Company, Incorporated in Zanesville, OH from March 2013 to June 2016, Gruenebaum was employed by:
• Merrill Lynch, Pierce, Fenner & Smith Incorporated in Zanesville, OH from August 2007 to April 2013
• A.G. Edwards & Sons, Inc. in Zanesville, OH from November 2001 to August 2007
• J.J.B. Hilliard, W.L. Lyons, Inc. in Louisville, KY from July 1993 to November 2001
To learn more about Jay Gruenebaum and his broker history, you can read this FINRA report.
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