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Jeffrey Arbeit Formerly with Farmers Financial Expelled from Securities Industry
Israels & Neuman is looking into claims made against Jeffrey Arbeit of Austin Texas, who was a representative of Farmers Financial from March 2016 to March 2025. If you lost money, you may be able to make a claim.
What Was Alleged Regarding Arbeit
Jeffrey Arbeit was “discharged” by Farmers Financial in March 2025. In particular, Farmers Financial alleged that it terminated Arbeit’s registration after it became aware that Arbeit allegedly engaged in private securities transactions without prior approval or review, according to FINRA’s BrokerCheck. Specifically, Farmers Financial disclosed that Arbeit was allegedly involved with “promissory notes”.
Under FINRA Rule 3280, all financial products sold by advisors must be approved by the brokerage firm prior to the sales. If the advisor violates Rule 3280, it often is grounds for termination or suspension from the firm and is commonly referred to as “selling away”. Promissory notes are often used in selling away.
Farmers Financial is required to notify FINRA when an advisor is terminated, especially if it alleges potential violations of securities rules and regulations. This notice likely led to FINRA’s investigation. After Arbeit refused to cooperate with FINRA’s investigation, it led to him being barred from the securities industry.
Background on Jeffrey Arbeit
From March 2016 to March 2025, Jeffrey Arbeit had been a representative of Farmers Financial. He was assigned to an Austin, Texas office. BrokerCheck also discloses that Arbeit was a doctor of natural medicine in Bee Creek, Texas.
Responsibility for Arbeit’s Conduct
As discussed above, pursuant to Rule 3280, financial advisors must disclose all business activities to their brokerage firm, especially if it involves securities or investments. Failures to disclose outside business activities are often grounds for termination from a firm. Moreover, firms cannot simply rely on disclosures from advisors – they must adequately supervise the advisor’s conduct. If the firm fails to do so, it could be responsible for any investor losses.
We Help Investors in all 50 States, Including in Texas
Our securities arbitration law firm represents investors throughout the country, including in Texas and the Austin area. If you were a client of Jeffrey Arbeit and believe he acted improperly, you may be entitled to recover losses through FINRA arbitration.