Indiana Securities Divsion

Marc Nathan Jaffe was barred from the industry by FINRA as a result of his unregistered investment advisory services, unlawfully provided from February 2016 to November 2020. Marc Nathan Jaffe consented to the bar pursuant to the "Order Accepting Offer of Settlement" he entered into with FINRA on November 4, 2020. Thereafter, the Indiana Securities Division issued a Permanent Bar against Marc Nathan Jaffe based off FINRA's "Order Accepting Offer of Settlement."

Order

Bar (Permanent)

All Capacities (Except for no-fee brokerage account management for himself/family-members, if registration is not req'd by BD)

Permanent

12/21/2023

FINRA

Jaffe was named a respondent in a FINRA complaint alleging that he associated with a member firm and engaged in its securities business despite his statutory disqualification. The complaint alleges that Jaffe was an unregistered person acting in a registered capacity. Jaffe engaged in the firm's investment banking or securities business. Jaffe performed functions of a General Securities Representative by, among other things, communicating with members of the public to determine their interest in making investments, communicating with customers in an effort to maintain their accounts at the firm, discussing the nature or details of particular securities or investment vehicles, recommending the purchase or sale of securities through a firm registered representative, and receiving compensation for, and in connection with, securities transactions of firm customers.

Decision & Order of Offer of Settlement

Bar (Permanent)

All Capacities

Indefinite

11/4/2020

Without admitting or denying the allegations, Jaffe consented to the sanction and to the entry of findings that he associated with a member firm and engaged in its securities business despite being statutorily disqualified. The findings stated that Jaffe had just completed a suspension resulting from an earlier FINRA disciplinary action but remained statutorily disqualified. The firm filed an MC-400 application seeking permission for Jaffe to associate with the firm despite his statutory disqualification. FINRA's National Adjudicatory Council (the NAC) denied the application and found that Jaffe had engaged in serious misconduct by associating with the firm while the MC-400 application was pending. The NAC rejected the argument that it was permissible for Jaffe to act in the capacity of an analyst to another firm registered representative before obtaining relief from his statutory disqualification. In reality, Jaffe was facilitating securities activities in his former customers' accounts while disqualified. Since the NAC's decision, Jaffe has continued to associate with the firm. Jaffe's activities at the firm include communicating with firm customers regarding their investments and receiving disguised commissions under the guise of the analyst agreement considered by the NAC. With the chief compliance officer's (CCO) blessing, a representative continues to partner with Jaffe to conduct her securities business at the firm. The representative has made direct and indirect payments to Jaffe through the analyst agreement and an office sharing agreement. Jaffe has been paid approximately over $1,000,000 or 40 percent of the revenue of one of the firm's branches, which includes brokerage commissions and investment advisory fees, by a company the representative owned through the analyst agreement. The findings also stated that while not registered with FINRA in any capacity, Jaffe engaged in his firm's investment banking or securities business. Jaffe performed functions of a General Securities Representative by, among other things, communicating with members of the public to determine their interest in making investments, communicating with customers in an effort to maintain their accounts at the firm, discussing the nature or details of particular securities or investment vehicles, recommending the purchase or sale of securities through the representative, and receiving compensation for, and in connection with, securities transactions of firm customers.

WITHOUT ADMITTING OR DENYING THE FINDINGS AND SOLELY FOR THE PURPOSES OF THIS PROCEEDING AND ANY OTHER PROCEEDING BROUGHT BY OR ON BEHALF OF FINRA OR TO WHICH FINRA IS A PARTY, PRIOR TO A HEARING AND WITHOUT AN ADJUDICATION OF ANY ISSUE OF LAW OR FACT, I ACCEPTED AND CONSENTED TO THE ENTRY OF CERTAIN FINDINGS BY FINRA WITH RESPECT TO MY ASSOCIATION WITH ANDREAS WOOD'S INVESTMENT ADVISORY BUSINESS. THERE IS NO "FINDING" OF ANY CUSTOMER COMPLAINTS OR CUSTOMER LOSSES. NOR, I BELIEVE, WOULD I BE MAKING A "PUBLIC STATEMENT DENYING ANY FINDING IN THE AWC OR CREATE THE IMPRESSION THAT THE AWC IS WITHOUT FACTUAL BASIS" BY STATING THAT I RELIED ON MY ATTORNEYS AT ALL TIMES WITH REGARD TO THE LIMITS AND RESTRICTIONS PLACED ON MY DEALINGS WITH HER INVESTMENT ADVISORY BUSINESS. SINCE THERE WAS A DISAGREEMENT BETWEEN FINRA AND ME ABOUT WHETHER THOSE RESTRICTIONS WERE FULLY IMPLEMENTED, WE ENTERED INTO THE AWC SETTLEMENT AGREEMENT TO RESOLVE THE DISPUTE.

FINRA

Jaffe willfully failed to disclose material information on his Uniform Application for Securities Industry Registration or Transfer ("Form U4").

Decision

Denial

On May 16, 2017, the NAC issued Notice Pursuant to Section 19(d), Securities Exchange Act of 1934 finds the Membership Continuance Application (MC-400) submitted on March 24, 2016 by Integrity Brokerage Services, Inc. (CRD# 117589) is denied. FINRA found it not in public interest, and would create an unreasonable risk of harm to the market and investors, for Mark Jaffe to associate or continue to associate with firm as a General Securities Representative, etc. The Application was denied for the following reasons: Jaffe's pattern of failing to disclose matters on his Form U4, including an additional disclosure failure unrelated to the 2015 AWC, as well as his improper and extensive association with the Firm while statutorily disqualified, demonstrate that he is currently unable to show that he can comply with FINRA's rules and regulations. Moreover, concerns with Jaffe's proposed supervisors, and questions concerning the Firm's ability to adequately supervise Jaffe pursuant to a stringent plan of supervision, weigh heavily against approving the Application. If no further action is taken, the decision will become final on July 3, 2017. The denial is in effect pending the Decision's finality.

FINANCE 500, INC

Discharged

JAFFE INDIRECTLY RECEIVED COMMISSIONS FROM ANOTHER REGISTERED REPRESENTATIVE IN HIS OFFICE IN POSSIBLE VIOLATION OF FINRA RULE 2040 WHEN THAT ASSOCIATE TRANSFERRED COMMISSIONS TO JAFFE FINANCIAL SERVICES, INC. ("JFS"), THE NON-REGISTERED ENTITY CONTROLLED BY JAFFE THROUGH WHICH HE CONDUCTS BUSINESS. THE COMMISSION SHARING ARRANGEMENT ALSO APPEARS TO HAVE CIRCUMVENTED STATE AGENT REGISTRATION REQUIREMENTS IN THAT JAFFE WAS NOT REGISTERED IN STATES WHERE HIS ASSOCIATE EARNED COMMISSIONS THAT WERE PAID OVER TO JFS.

FINRA

WITHOUT ADMITTING OR DENYING THE FINDINGS, JAFFE CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT HE WILLFULLY FAILED TO TIMELY DISCLOSE ON HIS FORM U4 FEDERAL AND STATE TAX LIENS.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$15,000.00

Suspension

ANY CAPACITY

60 BUSINESS DAYS

9/21/2015

12/14/2015

THE SETTLEMENT INCLUDES A FINDING THAT JAFFE WILLFULLY FAILED TO DISCLOSE A MATERIAL FACT ON A FORM U4, AND THAT UNDER SECTION 3(A)(39)(F) OF THE SECURITIES EXCHANGE ACT OF 1934 AND ARTICLE III, SECTION 4 OF THE FINRA BY-LAWS, THIS OMISSION MAKES HIM SUBJECT TO A STATUTORY DISQUALIFICATION WITH RESPECT TO ASSOCIATION WITH A MEMBER.

Fine paid in full on February 9, 2016.

POOR PERFORMANCE

$8,500.00

CUSTOMER ALLEGED,INTER ALIA, UNSUITABLE INVESTMENT REOMENDATIONS IN 2001 AND 2002

$1,351,362.00

$255,000.00

MR. JAFFE STRONGLY DENIES ANY WRONGDOING. MORGAN STANLEY SETTLED THE MATTER, WITHOUT ANY ADMISSION OF LIABILITY, TO AVOID THE COST AND UNCERTAINTY OF FURTHER LITIGATION.

UNSUITABILITY

$125,000.00

$45,000.00

SETTLED

MORGAN STANLEY DW INC.

Discharged

MR.JAFFE LEFT THREATENING VOICE-MAIL MESSAGES FOR ONE OF HIS CO-WORKERS AND INAPPROPRIATE VOICE-MAIL MESSAGES FOR ANOTHER CO-WORKER ON AUGUST 19,2004.

CUSTOMER ALLEGES REPRESENTATIVE MADE UNAUTHORIED TRADES AND UNSUITABLE INVESTMENTS

$525,000.00

CLAIMANT ALLEGES FA MADE UNSUITABLE INVESTMENTS WHOLLY INCONSISTENT WITH HIS OBJECTIVES. CLAIMANT ALLEGES FA ENGAGED IN EXCESSIVE TRADING FOR THE PURPOSE OF GENERATING COMMISSIONS. CLAIMANT FURTHER ALLEGES THAT FA MADE MATERIAL MISREPRESENTATIONS AND OMISSIONS IN CONNECTION WITH THE PURCHASE/SALE OF SECURITIES.

$211,622.00

$55,000.00

1.) ONE COUNT 2.) FELONY INTIMIDATION 3.) NOT GUILTY 4.) N/A

FELONY

A.GUILTY PLEA FOR CLASS A MISDEMEANOR B. JUNE 30,2005 C.1 YEAR COUNTY JAIL, SUSPENDED. 1 YEAR PROBATION WITH RESTRICTIONS. $1000 FINE, SUSPENDED. $136.00 COURT COSTS. D. 1 YEAR PROBATION E. JUNE 30, 2005 F. $136.00 COURT COSTS G. JUNE 30,2005

PERSONAL DISPUTE WITH FORMER PARTNERS DUE TO BREAK-UP OF PARTNERSHIP. JURY TRIAL SCHEDULED FOR 1/04/2005.

CUSTOMER ALLEGES FA MADE UNSUITABLE INVESTMENTS AND RECOMMENDATIONS. CUSTOMER ALSO ALLEGES FA MADE UNAUTHORIZED TRANSACTIONS AND ENGAGED IN CHURNING.

$1,000,000.00

$80,000.00

MERRILL LYNCH IS INVESTIGATING THE ALLEGATIONS SET FORTH IN THE CUSTOMER'S COMPLAINT.

CLAIMANT ALLEGES UNSUITABLE RECOMMENDATIONS AND INVESTMENTS BY HIS FA. CLAIMANT FURTHER ALLEGES FA ENGAGED IN UNAUTHORIZED TRANSACTIONS AND CHURNED HIS ACCOUNTS.

$1,000,000.00

$450,000.00

CLAIMANT WAS AWARDED $450,000 WITH $225,000 TO BE PAID BY MERRILL LYNCH AND $225,000 TO BE PAID BY MR. JAFFE

CLAIMANT ALLEGES FA MADE UNSUITABLE AND UNAUTHORIZED TRANSACTIONS ON HER BEHALF. CLAIMANT FURTHER ALLEGES FA CHURNED HER ACCOUNTS.

$80,000.00

$294,000.00

MERRILL LYNCH WILL FILE A STATEMENT OF ANSWER RESPONDING TO THE ALLEGATIONS SET FORTH IN CLAIMANT'S STATEMENT OF CLAIM. - [CUSTOMER]'S ALLEGATIONS WERE NOT WITH MR. JAFFE, BUT ACTUALLY AGAINST HER FORMER BROKER AT MERRILL LYNCH. SHE WAS MR. JAFFE'S CLIENT FOR ONLY 50 DAYS. HER ACCOUNT WAS ASSIGNED TO HIM AT HER FORMER BROKER'S REQUEST. HER ONLY ALLEGATION AGAINST MR. JAFFE WAS THAT HE INVESTED $19,000 OF HER MONEY IN MONEY MARKET FUNDS AND SHE DIDN'T RECALL GIVING HIM THE OK TO DO SO. MR. JAFFE ONLY SPOKE WITH HER TWO TIMES, ONCE TO DISCUSS HER GOALS AND OBJECTIVES AND THE SECOND TIME TO DISCUSS DIVERSIFICATION. HE DID EXACTLY WHAT THEY AGREED UPON.

CLIENT ALLEGED MR. JAFFE MADE UNSUITABLE RECOMMENDATIONS AND FAILED TO DISCLOSE THE INHERENT RISKS OF THE RECOMMENDATIONS.

$27,195.00

$18,600.00

IN THE INTEREST OF CUSTOMER SERVICE, WITHOUT ADMITTING ANY LIABILITY, AND TO AVOID THE COSTS ASSOCIATED WITH LITIGATION THIS MATTER WAS SETTLED FOR $18,600.

CLAIMANT ALLEGES UNSUITABLE RECOMMENDATIONS AND INVESTMENTS IN HER ACCOUNT. CLAIMANT ALSO ALLEGES FA MADE MISREPRESENTATIONS AND OMISSIONS OF MATERIAL FACTS.

$100,141.78

$46,000.00

SETTLED

CUSTOMER ALLEGES UNSUITABLE RECOMMENDATIONS AND INVESTMENTS IN HER ACCOUNT.

$105,000.00

$20,000.00

CLAIMANT ALLEGES UNAUTHORIZED TRADING, AS WELL AS MISREPRESENTATIONS AND OMISSION OF MATERIAL FACTS.

$325,670.00

$175,000.00

SETTLED.

CUSTOMER ALLEGES UNSUITABILITY WITH RESPECT TO RECOMMENDATIONS AND TRANSACTIONS MADE IN THIS ACCOUNT. CUSTOMER ALLEGES FURTHER THAT FA MADE MISREPRESENTATIONS OF MATERIAL FACTS.

$570,000.00

CHURNING AND UNSUITABILITY

$1,800,000.00

$700,000.00

SETTLED.

UNSUITABILITY

$179,000.00

$20,000.00

SETTLED.

EXCESSIVE TRADING

$400,000.00

$170,000.00

SETTLED.

CLAIMANT ALLEGES EXCESSIVE TRADING IN ACCOUNT.

$400,000.00

$65,000.00

CLAIMANT ALLEGES THAT FINANCIAL ADVISOR RECOMMENDED CONCENTRATED POSITIONS IN ACCOUNT THAT WAS UNSUITABLE.

$643,000.00

$70,000.00

SETTLED. CLAIMANT HAD RELEASED ALL CLAIMS AGAINST MR. JAFFE IN HIS SETTLEMENT WITH MORGAN STANLEY.

CUSTOMER ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS.

$2,300,000.00

$75,000.00

CUSTOMERS ALLEGE FA MADE USNUITABLE INVESTMENT RECOMMENDATIONS.

$285,000.00

CUSTOMER ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS.

$28,000.00

CLAIMANTS ALLEGE UNSUITABLE INVESTMENT RECOMMENDATIONS, BREACH OF FIDUCIARY DUTY, NEGLIGENCE, VIOLATION OF FLORIDA STATUTE 517.301.

$365,000.00

$40,000.00

CLAIM WAS SETTLED TO AVOID THE EXPENSE AND UNCERTAINTY OF LITIGATION.

CLAIMANTS ALLEGE UNSUITABLE, UNAUTHORIZED AND EXCESSIVE TRADING, CHURNING, BREACH OF CONTRACT.

$6,000,000.00

$900,000.00

CLAIMANT CLAIMS FC MADE UNSUITABLE UNAUTHORIZED TRADES AND CHURNED ACCOUNT AND BREACH OF FIDUCIARY DUTY.

$1,500,000.00

$105,000.00

SETTLED TO AVOID COST AND UNCERTAINTY OF LITIGATION.

CUSTOMER ALLEGES UNSUITABLE TRADING AND CHARGING COMMISSIONS IN EXCESS OF WHAT WAS REPRESENTED WOULD BE CHARGED.

$400,000.00

$250,000.00

THE MATTER WAS SETTLED TO AVOID EXPENSE OF LITIGATION.

CUSTOMER ALLEGES FA MADE UNAUTHORIZED TRANSACTIONS

CUSTOMER ALLEGES MUTUAL FUNDS WERE PURCHASED WITHOUT HIS PRIOR APPROVAL.

$7,000.00

CUSTOMER ALLEGE INVESTMENTS WERE UNSUITABLE.

$225,000.00

$179,258.00

CUSTOMER ALLEGES THAT FC RECOMMENDED PURCHASES OF WINSTAR COMMUNICATIONS BASED ON "INSIDE INFORMATION" REGARDING A BUY-OUT.

$58,938.00

CUSTOMER ALLEGES THAT COMMISSIONS CHARGED BY THE FC WERE IN EXCESS OF WHAT HAD BEEN COMMITED TO HIM.

$300,000.00

$250,000.00

CUSTOMER ALLEGES THAT FC EXERCISED DISCRETION, CHURNED AND MISMANAGED THE ACCOUNT OF THE CUSTOMER.

$1,100,000.00

$400,000.00

MERRILL LYNCH PIERCE FENNER & SMITH

Voluntary Resignation

AT THE TIME OF HIS VOLUNTARY RESIGNATION, MR. JAFFE WAS UNDER INTERNAL REVIEW AS THE RESULT OF CLIENTS INFORMING THE FIRM THAT HE EXERCISED DISCRETION OF THEIR ACCOUNTS.

CUSTOMER ALLEGES THAT FC GROSSLY MISMANAGED HIS PORTFOLIO. NO SPECIFIC AMOUNT ALLEGED.

ORAL COMPLAINT RECEIVED IN WHICH CUSTOMERS ALLEGE UNSUITABLE INVESTMENT RECOMMENDATIONS.

$201,000.00

$77,500.00

CUSTOMERS ALLEGE THAT JAFFE RECOMMENDED UNSUITABLE INVESTMENTS IN 1999 AND 2000.

$100,000.00

ALLEGATIONS CURRENTLY UNDER REVIEW.