What does our research say about Jeffrey Fratarcangeli?

Breach of Fiduciary Duty: Directed clients to investments tied to undisclosed revenue-sharing deals with a broker-dealer, earning $260,000 in hidden compensation. Advised clients into mutual fund share classes with inflated fees instead of cheaper alternatives, prioritizing personal gain over client savings.

Misuse of Soft Dollar Arrangements: Diverted client commission funds meant for research/services to cover personal or firm expenses, violating SEC soft dollar rules. Failed to disclose these arrangements to clients, masking the true purpose of commission expenditures.

Compliance Failures: As FWM’s CCO, failed to implement safeguards to detect or prevent conflicts of interest, enabling ongoing misconduct. Exploited his position as both principal and compliance officer to avoid accountability, creating systemic oversight gaps.

Prior Termination from Merrill Lynch: Fired in 2018 for unauthorized changes to a client’s beneficiary form, violating FINRA Rule 2010. Lost a 2023 bid to challenge Merrill’s termination filing, reinforcing credibility of the firm’s allegations.

Client Dissatisfaction: Post-SEC settlement, industry forums (2025) suggest client grievances about opaque fees and underperformance. Marketed as “client-centric” but SEC findings reveal profit-driven practices, eroding trust in his professional persona.