FINRA

RESPONDENT JEFFREY ALLAN FORREST FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

6/29/2009

11/29/2010

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS AND FINRA RULE 9554, JEFFREY ALLAN FORREST'S REGISTRATION IS SUSPENDED ON JUNE 29, 2009 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE. SUSPENSION LIFTED NOVEMBER 29, 2010.

FINRA

FINRA RULES 2010 AND 8210: RESPONDENT JEFFREY A. FORREST FAILED TO RESPOND TO FINRA REQUESTS FOR INFORMATION.

Decision

Bar (Permanent)

All Capacities

Indefinite

12/4/2009

DEFAULT DECISION RENDERED NOVEMBER 6, 2009 WHEREIN FORREST IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR FAILING TO RESPOND TO FINRA REQUESTS FOR INFORMATION. DECISION BECAME FINAL ON DECEMBER 4, 2009.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC ADMIN RELEASE 34-59456; IA RELEASE 40-2846, FEBRUARY 25, 2009: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTIONS 203(E) AND 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 AGAINST JEFFREY A. FORREST, ("RESPONDENT"). ON FEBRUARY 4, 2009, A FINAL JUDGMENT WAS ENTERED BY CONSENTS AGAINST FORREST, PERMANENTLY ENJOINING FORREST FROM FUTURE VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, AND SECTIONS 206(1) AND 206(2) OF THE ADVISERS ACT, IN THE CIVIL ACTION NO. 2:08-CV-06278-GAF-SS, IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA.

Order

Bar (Permanent)

ANY CAPACITY

Indefinite

5/15/2009

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC LITIGATION RELEASE 20737, SEPTEMBER 24, 2008: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION" OR "SEC") TODAY CHARGED A SAN LUIS OBISPO, CALIFORNIA-BASED INVESTMENT ADVISER AND ITS OWNER WITH FRAUD FOR FAILING TO DISCLOSE A MATERIAL CONFLICT OF INTEREST WHEN RECOMMENDING THAT THEIR CLIENTS INVEST IN A HEDGE FUND THAT MADE UNDISCLOSED SUBPRIME AND OTHER HIGH-RISK INVESTMENTS. THE SEC ALLEGES THAT INVESTMENT ADVISER COMPANY ("COMPANY") AND ITS PRINCIPAL JEFFREY A. FORREST RECOMMENDED THAT MORE THAN 60 OF THEIR CLIENTS INVEST APPROXIMATELY $40 MILLION IN EQUITY OPTIONS FUND ("FUND"), A HEDGE FUND MANAGED BY SALT LAKE CITY-BASED CONSULTING FIRM ("FIRM"). ACCORDING TO THE SEC'S COMPLAINT, COMPANY AND FORREST FAILED TO DISCLOSE A SIDE AGREEMENT IN WHICH COMPANY RECEIVED A PORTION OF THE PERFORMANCE FEE THAT FUND PAID FIRM FOR ALL THE COMPANY ASSETS INVESTED IN THE HEDGE FUND. FROM APRIL 2005 TO SEPTEMBER 2007, THE COMPANY RECEIVED MORE THAN $350,000 IN PERFORMANCE FEES FROM THE FIRM. THE FUND COLLAPSED IN AUGUST 2007, AND COMPANY CLIENTS LOST NEARLY ALL OF THE MONEY THEY INVESTED. THE SEC'S COMPLAINT, FILED IN FEDERAL DISTRICT COURT IN LOS ANGELES, CHARGES COMPANY AND FORREST WITH VIOLATING SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, AND SECTIONS 206(1) AND 206(2) OF THE INVESTMENT ADVISERS ACT OF 1940.

Judgment Rendered

Injunction

ALLEGATIONS OF SUITABILITY, MISREPRESENTATION FROM MULTIPLE CLAIMANTS ALLEGING THAT JEFF FORREST RECOMMENDED THAT THEY INVEST IN THE APEX EQUITY OPTIONS FUND, LP. AND OTHER INVESTSMENTS, MOST OF WHICH WERE NOT APPROVED BY THE FIRM FOR ITS REGISTERED REPRESENTATIVES TO SELL. THE APEX PRODUCT COLLAPSED IN AUGUST OF 2007. IT APPEARS THAT MOST OF APEX INVESTMENTS AND SOME OF THE OTHER INVESTMENTS IDENTIFIED OCCURRED AFTER THE ADVISOR TERMINATED FROM THE FIRM. ONLY A COUPLE OF THE CLAIMANTS TRANSACTED INVESTMENTS THROUGH THE FIRM.

$9,613,467.00

$8,858,596.00

THE U.S. DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA IN CASE NO. CV 09-2771AG(RNBX) ISSUED AN ORDER ON JUNE 1, 2009 DENYING FORREST'S MOTION TO REMAND, DENYING THE MOTION TO DISMISS AND DENYING THE PETITION TO VACATE.