A Wilbanks Securities registered rep in Austin, TX made some trading errors in a customer’s account that resulted in losses.  Rather than report the errors to his firm, the broker, Jason Jacobs, tried to resolve the matter himself through some fancy short-term trading.  Beginning to get the picture? A Short-Lived Securities Career. Jason Jacobs entered the securities industry in 2002 and stayed with Wilbanks Securities throughout.  In July 2008, Jacobs entered into a settlement with the Oklahoma securities regulator which had charged him with unsuitable recommendations, use of discretion without prior written authorization, and guaranteeing a customer against losses.  Jacobs accepted a $2,500 fine and 45-day suspension.  By early 2010, he was out of the industry. FINRA's Alleged Findings. Between 5/5/09 and 1/25/10, Jacobs attempted to share in customer losses by depositing over $13,000 of his personal funds into a customer's account.  The deposits were made without the Firm's knowledge or approval.  The customer provided no written authorization for him to do so. It all began in 2006, between April and June, when Jacobs made a series of trading errors in a customer's account.  In an attempt to recoup the losses that resulted from the errors, Jacobs began engaging in short-term short sale activity.  The short-term short-sale activity resulted in further losses.  Rather than report his concerns to his firm, Jacobs attempted to avoid a customer complaint by depositing funds into the customer's account.  In total, he made 15 deposits, totaling about $13,400.

[C-I Note: Unfortunately, FINRA documentation does not explain what transpired between 2006 and 2009 - a rather significant gap.   Let's surmise that Jacobs felt guilty and confessed his errors to the customer 3 years after the fact.  That angered or disappointed the customer, who then threatened to file a complaint.  Payments then ensued.]

Sanction. Jacobs received a $10,000 fine and 45-day suspension.   [FINRA AWC #2010022262601]    [Disciplinary Actions from Sept. 2011]