Newport Beach, CA – December 12, 2025 – Jacob Lee Harper (CRD# 4258319), a financial advisor previously registered with LPL Financial LLC and D.A. Davidson & Co., has a regulatory disclosure on his FINRA BrokerCheck record. FINRA sanctioned Mr. Harper for borrowing money from customers without firm approval, providing false statements to regulators, and maintaining undisclosed outside securities accounts. He received a 22-month suspension from the securities industry and a $17,500 fine. This post provides a detailed overview of the regulatory action, explains the significance of these violations, and outlines investor rights and recovery options.
BrokerCheck Snapshot
Name: Jacob Lee Harper
CRD #: 4258319
Firm: Not Currently Registered (previously LPL Financial LLC and D.A. Davidson & Co.)
Location: Newport Beach, CA / Laguna Niguel, CA
Years in Industry: 21
Number of Disclosures: 1
Regulatory Action Against Jacob Lee Harper
According to FINRA BrokerCheck records, Jacob Lee Harper consented to sanctions in a FINRA regulatory action finalized on November 10, 2025. The details are as follows:
Action Initiated: November 10, 2025
FINRA Case Number: 2025085030301
Employing Firms: D.A. Davidson & Co. and LPL Financial, LLC
Resolution: Acceptance, Waiver & Consent (AWC)
Status: Final
Violations
1. Borrowing from Customers Without Firm Approval
Between November 2024 and January 2025, Mr. Harper borrowed $50,000 from two customers without seeking or obtaining prior written approval from his member firm, in violation of FINRA Rules 3240 and 2010. The findings stated that Mr. Harper borrowed the money from two of his friends and customers who were neither members of his immediate family nor lending-related financial institutions. The loans, which were obtained in part to support Mr. Harper’s outside business activity, were not documented in writing and had no specified duration, repayment schedule, or interest rate. Mr. Harper has returned $3,000 to one customer but has not made any other principal or interest payments to the customers.
After obtaining the loans, Mr. Harper completed a firm compliance certification that falsely stated he did not have a borrowing or lending arrangement with a customer who was not a member of his immediate family or a financial institution.
2. Providing False Statements to FINRA
In April and May 2025, Mr. Harper violated FINRA Rules 8210 and 2010 by initially providing false, misleading, and incomplete responses to FINRA requests for information. Mr. Harper submitted a written response to a FINRA request falsely stating that the first customer had paid him for a vehicle that Mr. Harper had sold to him, omitting any reference to the money he borrowed. In response to a later request, Mr. Harper submitted another written response containing multiple false statements about events and discussions that never occurred. Mr. Harper later admitted that no vehicle transaction had occurred and that the money received was a loan.
3. Undisclosed Outside Securities Accounts
From May 2024 through May 2025, Mr. Harper violated FINRA Rules 3210 and 2010 by establishing three outside securities accounts without obtaining prior written consent from his firms. Mr. Harper partially funded the accounts held in his fiancée’s name at another FINRA member firm. Mr. Harper materially contributed to his fiancée’s financial support, including through the loans he obtained from customers. He placed over 1,000 trades in the accounts, including in two securities on his firm’s restricted list.
Mr. Harper completed a firm compliance certification that falsely stated his list of outside securities accounts was complete and accurate. When he left D.A. Davidson and joined LPL Financial, he failed to disclose the accounts or obtain the firm’s written consent within 30 days and completed another compliance questionnaire in which he falsely stated that there were no outside securities accounts in which he had a beneficial interest.
Sanctions Imposed
Suspension: 22 months in all capacities
Start Date: December 1, 2025
End Date: September 30, 2027
Fine: $17,500.00 (deferred payment plan)
Pattern of Violations / Risk Factors
Mr. Harper’s conduct involved multiple, serious violations of securities industry rules designed to protect investors and maintain market integrity. Borrowing money from customers without firm approval creates conflicts of interest and can compromise a broker’s objectivity in providing investment advice. Providing false statements to regulators obstructs regulatory oversight and undermines investor protection. Maintaining undisclosed outside securities accounts prevents firms from supervising broker activities and detecting potential conflicts of interest or unsuitable trading.
Can Investors Recover Losses?
While this regulatory action does not involve direct customer complaints, investors who worked with Mr. Harper and experienced losses, unsuitable investment recommendations, or other forms of broker misconduct may be entitled to recover their losses through FINRA arbitration. The violations disclosed in the regulatory action raise concerns about Mr. Harper’s adherence to industry standards and his firms’ supervision of his activities.
Patil Law, P.C. has over 15 years of experience representing investors in FINRA arbitration and securities litigation, with more than $25 million recovered for clients across 1,000+ cases. We provide a free, confidential consultation to review your potential claim. Our firm works on a contingency fee basis, meaning you pay no attorney fees unless we successfully recover money for you.
About FINRA Arbitration
FINRA arbitration is a streamlined dispute resolution process for securities-related claims. It offers a faster, more cost-effective alternative to traditional court litigation. Most cases are resolved within 12-16 months. Claims generally must be filed within six years of the incident, though the timeline can vary depending on the specific circumstances of each case.
Related Brokers and Firms
Investors who worked with advisors at LPL Financial, D.A. Davidson & Co., or Wells Fargo Advisors may want to review their account statements for similar issues. Common problems include unsuitable investment recommendations, unauthorized trading, excessive trading, and failure to supervise by the brokerage firm.
Frequently Asked Questions
What is the regulatory action against Jacob Lee Harper?
FINRA sanctioned Mr. Harper for three violations: (1) borrowing $50,000 from two customers without firm approval between November 2024 and January 2025, (2) providing false and misleading statements to FINRA during its investigation in April and May 2025, and (3) establishing and trading in three undisclosed outside securities accounts from May 2024 through May 2025. He received a 22-month suspension from the securities industry (December 1, 2025 through September 30, 2027) and a $17,500 fine.
Can investors recover losses involving LPL Financial or D.A. Davidson & Co.?
Yes, investors who suffered losses due to unsuitable recommendations, unauthorized trading, or other forms of broker misconduct may be entitled to pursue recovery through FINRA arbitration. Both firms are FINRA member organizations, and investors have the right to file arbitration claims against registered representatives and their employing firms.
What is FINRA arbitration?
FINRA arbitration is a dispute resolution forum specifically designed for investment-related claims between investors and brokerage firms or brokers. It is typically faster and less expensive than traditional litigation. An independent arbitration panel hears evidence from both sides and issues a binding decision. Most investor agreements with brokerage firms include mandatory arbitration clauses.
What does “unsuitable investment” mean?
An unsuitable investment is one that does not align with an investor’s financial situation, investment objectives, risk tolerance, age, or investment experience. Financial advisors have a regulatory obligation to recommend only suitable investments. Recommending high-risk investments to conservative investors or those nearing retirement may constitute unsuitability.
How do I look up a broker on BrokerCheck?
Visit FINRA’s BrokerCheck website at brokercheck.finra.org and search by the broker’s name or CRD number. The report will show the broker’s employment history, qualifications, and any disclosure events including customer complaints, regulatory actions, or terminations. All registered brokers are required to maintain accurate disclosure records.
What should I do if I suspect broker misconduct?
First, gather all account statements, correspondence, and investment documentation. Review your losses and the nature of the investments recommended. Then, file a complaint with FINRA and consult with a securities attorney who can evaluate whether you have a viable claim. Time limits apply, so it’s important to act promptly.
About Patil Law, P.C.
Patil Law, P.C. is a securities litigation firm dedicated to representing investors who have suffered losses due to broker misconduct, unsuitable recommendations, and securities fraud. Founded in 2018 by attorney Chetan Patil, the firm focuses exclusively on FINRA arbitration and investment loss recovery.
With over 15 years of combined experience in securities law, Patil Law has successfully recovered more than $25 million for clients across 1,000+ cases. Attorney Chetan Patil earned his law degree from Case Western Reserve University School of Law. Attorneys Gabriela Dubrocq and Patricia Herrera earned their law degrees from University of Miami. The firm handles cases nationwide involving unauthorized trading, churning, unsuitable investments, breach of fiduciary duty, and failure to supervise.
Patil Law works on a contingency fee basis, meaning clients pay no attorney fees unless the firm successfully recovers money on their behalf. All consultations are free and confidential.
Contact Patil Law for a Free Consultation
If you lost money after investing with Jacob Lee Harper or any broker at LPL Financial, D.A. Davidson & Co., or Wells Fargo Advisors, we can help. Our experienced securities attorneys will review your case at no cost and explain your options for recovering your investment losses.
Call us today at 800-950-6553 or email info@patillaw.com to schedule your free, confidential consultation. We handle cases nationwide and work on a contingency fee basis—you pay nothing unless we win.
Disclaimer:
The information in this post is based on FINRA BrokerCheck records and public filings. Allegations described are pending or unproven and may be contested. All investors are entitled to fair treatment under securities laws. This is attorney advertising. Prior results do not guarantee a similar outcome. This communication is for informational purposes only and does not create an attorney-client relationship.
