JONATHAN EARL BEST Investment Fraud Investigation

March, 2025 | Based in Henderson, TX

Don’t face potential investment losses alone – Call 800-950-6553 today to discuss your situation with our experienced securities fraud attorneys. We offer confidential consultations to help determine if you have grounds for recovery.

Essential Information on Jonathan Earl Best

• Full Name: Jonathan Earl Best
• CRD Number: 2225091
• Current Status: Not currently registered
• Last Employer: Raymond James Financial Services, Inc. (Henderson, TX)
• Office Address: 401 S Main St, Henderson, TX 75654
• Registration History: Previously registered with Raymond James Financial Services (01/2001-01/2025), PrimeVest Financial Services (05/1994-01/2001), and Aragon Financial Services (04/1992-05/1994)
• Disclosure Events: One regulatory action and one customer dispute
• Current Employment: Recently joined Jaffe Tilchin Investment Partners in Tampa, FL (as of 01/2025)
• Industry Experience: Over 30 years in the securities industry (since 1992)
• FINRA Sanctions: Three-month suspension (04/07/2025-07/06/2025), $12,500 fine, and $10,760.88 disgorgement plus interest
• Ability to Recover Losses: Investors who suffered losses may be eligible for recovery through FINRA arbitration

Serious Misconduct Allegations: Unauthorized Trading and Senior Exploitation

Jonathan Earl Best, a longtime financial advisor formerly based in Henderson, Texas, is currently facing serious regulatory action following a FINRA investigation that uncovered troubling misconduct involving a vulnerable senior investor. On December 13, 2024, FINRA filed a complaint against Best, which has since resulted in significant disciplinary action through a settlement agreement.

According to the FINRA complaint, Best engaged in unauthorized trading in a senior customer’s account between December 2017 and December 2019, placing over $14 million in trades without proper authorization. The case is particularly concerning because it involved a senior investor with diminished capacity who was residing in a memory care facility and unable to make investment decisions.

The investigation revealed that Best was aware of the customer’s diminished capacity as early as 2014, yet continued to execute trades in the non-discretionary account without proper authorization. This continued despite Best’s own admission to the customer’s relative that he could not effect transactions in the account due to the customer’s diminished capacity.

Details of the Regulatory Action

FINRA’s investigation uncovered a pattern of troubling behavior that violated core investor protection rules. On March 3, 2025, FINRA announced that Best had agreed to a settlement that included:

1. A three-month suspension from the securities industry
2. A $12,500 fine
3. Disgorgement of $10,760.88 in commissions earned from the unauthorized transactions
4. Payment of pre-judgment interest on the disgorged amount

The sanctions stemmed from violations of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.

FINRA’s findings indicated that Best attempted to position himself as co-power of attorney for the senior customer through estate planning documents that would be triggered if two physicians deemed the customer incapacitated. However, Best’s firm explicitly prohibited representatives from serving as power of attorney for customers without special approval, which Best never received. In fact, when Best requested approval to serve in this capacity, his supervisor rejected the request and instructed him to formally recuse himself, which he failed to do.

Unauthorized Certificate of Deposit Transactions

Between December 19, 2017, and December 3, 2019, Best executed unauthorized purchases of laddered brokered certificates of deposit (CDs) in the customer’s account, using cash proceeds from matured and called bonds. These transactions totaled an astonishing $14,199,847 in principal value.

Best earned $10,760.88 in compensation from these unauthorized trades – money that FINRA has now ordered him to return as part of the settlement.

The case highlights the dangers when a financial advisor continues to execute trades in an account when the customer lacks capacity to authorize such transactions. While Best may have believed he was acting in the customer’s interest by reinvesting cash from matured bonds, the rules are clear: without proper authorization or discretionary authority, such actions constitute violations of securities regulations.

False Compliance Attestations

Compounding the unauthorized trading violations, FINRA found that Best submitted two false compliance attestations to his firm. When asked if he had “any senior investors or other vulnerable adults for which [he was] concerned with their capacity to make sound decisions,” Best falsely attested “no.”

These attestations were demonstrably false because Best was well aware that the customer could not understand or authorize trades due to her diminished capacity. The customer was living in a memory care facility and unable to discuss or understand investments – facts that Best failed to disclose to his supervisor.

Prior Customer Dispute Settlement

This regulatory action follows a previous customer dispute that was settled in August 2022. According to FINRA records, a client alleged unsuitable investments and unauthorized trading against Best while he was at Raymond James Financial Services. That case resulted in a $275,000 settlement, although Best himself did not contribute to the settlement amount.

In his comments on the settlement, Best stated, “I agreed to the settlement to avoid the substantial time and expense of proceeding to final hearing. Case was brought by court-appointed guardian of the customer; I always had a wonderful relationship with the customer herself. Customer’s accounts made money during the time in question.”

The existence of both a substantial customer settlement and a regulatory action involving similar allegations of unauthorized trading raises significant concerns about Best’s business practices, particularly when dealing with elderly or vulnerable clients.

Best’s Professional Background

Jonathan Earl Best entered the securities industry in April 1992 with Aragon Financial Services, where he remained until May 1994. He subsequently moved to PrimeVest Financial Services from May 1994 to January 2001, before joining Raymond James Financial Services, where he worked for nearly 24 years (January 2001 to January 2025).

Best has passed several securities industry exams, including the General Securities Principal Examination (Series 24), the General Securities Representative Examination (Series 7), the Investment Company Products/Variable Contracts Representative Examination (Series 6), and the Uniform Securities Agent State Law Examination (Series 63).

In January 2025, Best left Raymond James and joined Jaffe Tilchin Investment Partners in Tampa, Florida. The move coincided with the pending FINRA action against him.

In addition to his securities work, Best has been involved in several other business activities, including:

1. Best Financial Group, Inc. – Owner
2. BFG Global, Inc. – 100% Owner
3. CUE Broadcasting – Agent
4. J. Best Holdings, LLC – 100% Owner (real estate)
5. Jon Best Farms – Owner-Operator

Legal and Regulatory Framework for Senior Investors

The allegations against Best highlight the importance of several key regulations designed to protect senior and vulnerable investors:

1. FINRA Rule 2010 – Requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.
2. FINRA Rule 2165 – Allows firms to place temporary holds on disbursements when financial exploitation of specified adults is suspected.
3. FINRA Rule 4512 – Requires firms to make reasonable efforts to obtain the name of a trusted contact person for a customer’s account.
4. FINRA Rule 3260 – Prohibits discretionary trading without prior written authorization from the customer and acceptance by the firm.
5. SEC Regulation Best Interest (Reg BI) – Requires broker-dealers to act in the best interest of retail customers when making recommendations.

These rules reflect regulators’ increasing focus on protecting senior investors from exploitation. The Best case demonstrates that FINRA takes violations involving vulnerable seniors particularly seriously, often resulting in significant sanctions.

Red Flags for Investors

The Best case illustrates several red flags that investors and their families should watch for:

1. Unauthorized Trading: Transactions appearing in account statements that were not authorized.
2. Excessive Trading: Unusually high account activity that may generate commissions for the advisor.
3. Unsuitable Investments: Products that don’t align with the investor’s stated objectives, risk tolerance, or time horizon.
4. Inappropriate POA Arrangements: Financial advisors seeking to obtain power of attorney over client assets.
5. Isolated Seniors: Advisors who limit family involvement or restrict access to account information.
6. Reluctance to Put Things in Writing: Advisors who avoid documenting investment recommendations or strategies.

Steps for Affected Investors

If you worked with Jonathan Earl Best at Raymond James Financial Services or are concerned about potential misconduct by any financial advisor, consider taking these steps:

1. Review Account Statements: Look for unauthorized transactions or unusual activity.
2. Document Everything: Keep records of all communications with your advisor.
3. Contact the Brokerage Firm: Report concerns to the advisor’s supervisor or the firm’s compliance department.
4. Consult with a Securities Attorney: Speak with an attorney who specializes in investment fraud and FINRA arbitration.
5. File a FINRA Complaint: Consider filing a complaint directly with FINRA.
6. Act Within Time Limits: Be aware that FINRA arbitration claims generally must be filed within six years of the event giving rise to the claim.

How Our Securities Fraud Attorneys Can Help

Investors who suffered losses while working with Jonathan Earl Best may have legal recourse through the FINRA arbitration process. Our firm specializes in representing investors in claims against brokers and brokerage firms and offers:

1. Free Case Evaluation: We’ll review your investment records to determine if you have a valid claim.
2. Experienced Representation: Our attorneys understand the complexities of unauthorized trading cases and elder financial abuse.
3. Contingency Fee Structure: We work on a “no recovery, no fee” basis, meaning you don’t pay legal fees unless we recover money for you.
4. Expertise with FINRA Proceedings: We have extensive experience navigating the FINRA arbitration process.
5. Recovery Options: We can pursue claims against both the individual broker and the brokerage firm, which has a duty to supervise its representatives.

The Best case highlights a particular concern with unauthorized trading in accounts of seniors with diminished capacity. Brokerage firms have a responsibility to implement reasonable supervisory procedures to detect and prevent such misconduct. When they fail to do so, both the firm and the individual advisor may be held accountable.

Understanding the Claims Process

For investors considering legal action, it’s important to understand the FINRA arbitration process:

1. Filing a Claim: Your attorney will file a Statement of Claim with FINRA, outlining the factual and legal basis for your case.
2. Respondent’s Answer: The broker and/or brokerage firm will respond to your allegations.
3. Arbitrator Selection: Parties select a panel of arbitrators from lists provided by FINRA.
4. Discovery: Both sides exchange relevant documents and information.
5. Hearing: Evidence and testimony are presented before the arbitration panel.
6. Award: The arbitrators issue a decision, which is typically final and binding.

FINRA arbitration is generally faster and less formal than court litigation, making it an attractive forum for resolving investor disputes.

If you’ve experienced investment losses while working with Jonathan Earl Best or any other financial advisor who may have engaged in misconduct, don’t delay in seeking legal advice. Our experienced securities fraud attorneys are standing by to help evaluate your potential claim. Call 800-950-6553 or complete our online form to schedule your confidential, no-obligation consultation.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.