Jonathon Webster (Stifel): FINRA Suspends Broker Over Excessive Commissions and Reg BI Violations
The securities fraud attorneys at The White Law Group are monitoring regulatory actions involving Jonathon Mark Webster, a longtime broker formerly with Stifel, Nicolaus & Company, Incorporated, who was recently suspended by the Financial Industry Regulatory Authority (FINRA) for conduct that allegedly resulted in more than $120,000 in unnecessary commissions charged to advisory clients.
According to a FINRA Letter of Acceptance, Waiver, and Consent (AWC), Webster reportedly recommended that clients execute a short-term trading strategy in commission-based brokerage accounts instead of their existing advisory accounts—despite the higher costs—raising serious questions under Regulation Best Interest (Reg BI).
FINRA Findings: “January Effect” Strategy and Excessive Costs
FINRA alleges that from November 2023 through December 2023, Webster recommended that 19 customers, including at least 13 senior investors, participate in a short-term trading strategy he referred to as the “January Effect.”
Under this strategy, customers purchased ten stocks in late 2023 with the expectation that prices would rise in January 2024. Rather than placing the trades in the customers’ fee-based advisory accounts—where transaction costs would have been lower—Webster allegedly directed clients to use existing brokerage accounts or open new commission-based accounts.
As a result, FINRA claims the customers incurred $121,725.58 in commissions they would not have paid had the trades been executed in their advisory accounts.
FINRA concluded that Webster lacked a reasonable basis to believe this account-type recommendation was in the customers’ best interest, constituting violations of SEC Regulation Best Interest and FINRA Rule 2010, which requires brokers to observe high standards of commercial honor.
Sanctions, Termination, and Rebilling of Client Accounts
Without admitting or denying the allegations, Webster agreed to a seven-month FINRA suspension.
According to FINRA and BrokerCheck records:
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Stifel reportedly discharged Webster in January 2024
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Stifel refunded the excess commissions and rebilled the trades to advisory accounts
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Webster’s Form U5 states he placed trades in newly opened commission-based accounts that should have been placed in existing fee-based accounts
Neither Webster’s counsel nor a Stifel spokesperson publicly commented on the matter.
Webster’s Employment History and Prior Disclosures
Webster has nearly 39 years of experience in the brokerage industry and has been registered with numerous major firms, including:
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Morgan Stanley
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Wells Fargo Advisors
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Citigroup Global Markets
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PaineWebber
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Shearson Lehman Hutton
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E.F. Hutton
He joined Stifel in 2019 and was terminated in February 2024.
His BrokerCheck record reflects:
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One prior customer dispute from his time at Wells Fargo
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Alleged unsuitable equity recommendations
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$1.9 million in claimed damages
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$200,000 settlement
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A bankruptcy filing, reported in 2025
Post-Stifel Registration Status
After leaving Stifel, Webster briefly registered as an investment adviser with Aegis Capital in March 2024. That registration expired in 2025, and he is currently not registered with FINRA or the SEC, according to public regulatory databases.
Why This Matters for Stifel Clients and Investors
This FINRA action highlights recurring concerns in investor cases involving:
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Account-type switching that increases costs
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Excessive commissions
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Short-term trading strategies pitched to seniors
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Failures to comply with Regulation Best Interest
Broker-dealers like Stifel have an obligation to supervise their representatives and ensure recommendations are made in the best interest of the customer, not the broker.
Recovering Losses Caused by Excessive Commissions or Unsuitable Advice
Investors who were harmed by excessive commissions, unsuitable trading strategies, or improper account recommendations may have the right to pursue recovery through FINRA arbitration.
The securities fraud lawyers at The White Law Group have extensive experience representing investors nationwide in claims involving:
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Reg BI violations
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Excessive trading and commissions
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Senior investor exploitation
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Brokerage firm supervision failures
Free, confidential consultation: 888-637-5510
Learn more: www.whitesecuritieslaw.com
Frequently Asked Questions (FAQs)
Was Jonathon Webster suspended by FINRA?
Yes. In 2025, FINRA suspended Jonathon Webster for seven months for violations related to Regulation Best Interest and excessive commissions.
What did FINRA allege against Webster?
FINRA alleged that Webster recommended commission-based brokerage accounts for a short-term trading strategy when advisory accounts would have been less expensive, resulting in over $121,000 in unnecessary commissions.
Can investors recover losses caused by excessive commissions?
Yes. Investors may be able to recover losses and excessive fees by filing a FINRA arbitration claim against the broker and the supervising brokerage firm.
