Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Jeffrey Arbeit (Arbeit) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Arbeit was employed by Farmers Financial Solutions, LLC at the time of the activity. If you have been a victim of Arbeit’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $131,000.00 on July 01, 2025.
Beginning sometime in or around 2019, the registered representative engaged in the sale of unsecured, non-registered promissory notes that were neither offered nor approved by Farmers Financial Solutions, LLC (the Firm) to an individual who was not a customer of the Firm. These transactions were conducted without the Firm\\u2019s knowledge or authorization.
FINRA BrokerCheck shows a final customer complaint on June 23, 2025.
Without admitting or denying the findings, Arbeit consented to the sanction and to the entry of findings that he refused to produce information and documents as requested by FNRA staff in connection to its investigation of allegations made in Form U5 filing by his member firm. The findings stated that Arbeit was terminated from his firm for failing to report private securities transactions.
We have a strong track record of advocating for victims of fraud when advisors obtain loans from clients or engage in securities sales via OBAs. The sale of unapproved investment products, fake investments that cover misappropriated funds, and other fraudulent behavior – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In finance, “selling away” occurs when a financial advisor recommends investments in companies, promissory notes, or other securities without the approval of their broker’s affiliated firm. While a few of these investments might be valid, many end up as Ponzi schemes or involve advisors illegally converting client funds.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. In order to properly supervise their brokers each firm is required to have procedures in order to monitor the activities of each advisor’s activities and interaction with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Arbeit has been in the securities industry for more than 8 years. Arbeit has been registered as a Broker with Farmers Financial Solutions, LLC since 2016.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.