Christopher John Jacobi, a financial advisor based in Pensacola, Florida, affiliated with Ameriprise Financial Services, is currently facing serious allegations from multiple clients. The complaints focus on unsuitable investment recommendations, leading to substantial financial losses. Investigations are underway to examine both Jacobi’s advisory practices and the oversight provided by Ameriprise.

Investor Complaints Highlight Risky Investment Strategies

In June 2024, a client filed a complaint through the Financial Industry Regulatory Authority (FINRA), claiming that Jacobi’s speculative investment advice led to losses exceeding $150,000. The complaint specifically mentions investments in Ebix Inc., a software and e-commerce services company that filed for bankruptcy in December 2023, resulting in a near-total loss of its stock value.

In August 2024, another client alleged that Jacobi recommended an unsuitable investment, seeking $250,000 in damages. This claim also centers around investments in Ebix Inc., highlighting a troubling pattern of advising clients to heavily invest in a single, high-risk stock.

The Gulf Breeze Case: Life Savings Wiped Out

One particularly distressing case involves a 61-year-old Gulf Breeze man who entrusted his life savings to Jacobi. According to the claim, Jacobi assured the client that investing in Ebix was a prudent strategy for retirement. However, following Ebix’s bankruptcy, the client’s investment was completely wiped out. The claim further alleges that Jacobi continued to reassure the client about the investment’s performance, even as its value plummeted.

FINRA Report Sheds Light on Allegations

According to FINRA, Jacobi has faced at least ten customer disputes throughout his career, with six of these currently pending. The primary issue cited in these complaints is the alleged recommendation of unsuitable investments, particularly involving EBIX stock. The six pending cases involve claimed damages ranging from $30,000 to $250,000, and the complaints are currently under FINRA arbitration in locations such as Atlanta and New Orleans.

Past Complaints and Regulatory Concerns

Past complaints against Jacobi have been dismissed or denied, but the volume and similarity of recent allegations raise serious questions about his advisory practices. According to FINRA, brokers are required to make suitable investment recommendations based on a client’s financial profile and risk tolerance. The repeated allegations of recommending high-risk, concentrated investments suggest potential violations of this standard.

Ameriprise Under Fire for Lack of Supervision

While the complaints primarily target Jacobi’s individual actions, some claims assert that Ameriprise failed to adequately supervise his investment practices. According to FINRA, firms are legally obligated to oversee the activities of their representatives and address any red flags related to unsuitable investment advice. The complaints allege that Ameriprise either knew or should have known about Jacobi’s investment practices but failed to intervene.

Protecting Your Investments

The ongoing cases underscore the importance of diversified investment strategies. Investors are reminded to remain vigilant and cautious when considering concentrated holdings in volatile stocks. Seeking professional financial advice from a trusted and transparent advisor is crucial to mitigating risks associated with speculative investments.

What Can Affected Investors Do?

Investors who believe they have suffered financial losses due to unsuitable recommendations from Jacobi are encouraged to seek legal advice. According to FINRA, filing a formal arbitration claim can be a viable method to seek compensation. Additionally, affected clients should review their portfolios for other potentially high-risk investments recommended by Jacobi.

Levin Papantonio Can Handle Claims for Jacobi Customers Who Sustained Losses

The Securities and Business Litigation team at Levin, Papantonio, Proctor, Buchanan, O’Brien, Barr & Mougey, P.A. is investigating claims from investors who were former customers of Jacobi and sustained financial loss as a result of his investment practices.

Our firm will investigate your case and fight to recover your financial losses. We charge you attorney’s fees only if we recover for you.

Call us today for a free case review: (800) 277-1193.