Jeffrey Arbeit Barred from Securities Industry After Allegations of Private Securities Transactions
The White Law Group is investigating potential securities claims involving former financial advisor Jeffrey Arbeit (CRD #6603428), formerly registered with Farmers Financial Solutions, LLC in Austin, Texas.
According to the Financial Industry Regulatory Authority (FINRA), on June 23, 2025, Arbeit was barred from associating with any FINRA member firm in all capacities. The sanction stems from allegations related to private securities transactions—sometimes referred to as selling away.
FINRA Findings: Failure to Cooperate with Investigation
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 FINRA staff. The investigation was prompted by allegations made in a Form U5 filing by his member firm.
Farmers Financial Solutions discharged Arbeit on March 6, 2025, after discovering that he engaged in unreported private securities transactions without prior review or approval from the firm, in violation of FINRA Rule 3280 and firm policy.
What are Private Securities Transactions (Selling Away)?
Private securities transactions occur when a broker solicits investments outside of their brokerage firm’s supervision or approval. This practice is known as selling away and often involves alternative investments, private placements, promissory notes, or other high-risk products.
When brokers fail to disclose these transactions, investors may face:
- Unsuitable investment recommendations
- Lack of due diligence on the product or issuer
- Heightened risk of fraud or default
- Difficulty recovering losses
FINRA Rule 3280 strictly prohibits registered representatives from engaging in private securities transactions without notifying and receiving approval from their employing firm.
Supervisory Issues and Firm Responsibility
Brokerage firms such as Farmers Financial Solutions have a duty to adequately supervise their registered representatives. If a broker is able to sell unapproved investments to clients, the firm may be held liable for failure to supervise.
Recovery of Investment Losses
If you invested with Jeffrey Arbeit and suffered financial losses, you may be able to pursue claims against his former brokerage firm through FINRA arbitration. This forum provides investors an opportunity to recover damages related to broker misconduct, including selling away and private securities transactions.
The White Law Group Can Help
The White Law Group is a national securities fraud law firm with offices in Chicago, Illinois and Seattle, Washington. Our attorneys have recovered millions of dollars for investors through FINRA arbitration claims against brokerage firms.
If you have concerns regarding your investments with Jeffrey Arbeit or Farmers Financial Solutions, please call our office at (888) 637-5510 for a free consultation.
Frequently Asked Questions (FAQs)
1. What does it mean that Jeffrey Arbeit was barred by FINRA?
A FINRA bar means he can no longer act as a broker or associate with any FINRA member firm in any capacity.
2. What is “selling away”?
Selling away occurs when a broker recommends or sells securities that are not approved or supervised by their employing brokerage firm.
3. Can I recover losses from private securities transactions recommended by my broker?
Yes, investors may be able to pursue recovery through FINRA arbitration claims against the brokerage firm if it failed to properly supervise the broker.
