A Gulf Breeze man lost his life savings after his financial advisor invested most of it in a failing company, according to a claim filed on behalf of the investor by his attorney. The litigator says the same advisor has shown a pattern of negligently making risky investment recommendations to “many, if not most of his other clients” in the Pensacola area with a “devastating” impact.
Attorney Michael Bixby filed the claim against financial services company Ameriprise and financial advisor Chris Jacobi, who works for the company’s Pensacola office, to recover damages. He filed it with Financial Industry Regulatory Authority (FINRA), a nonprofit organization that regulates broker-dealers.
The claim states that Jacobi told his client that investing in the struggling software supplier Ebix was a prudent method to grow his investment and retirement portfolio even though Ebix had filed for bankruptcy in 2023, which caused its stock price to plummet and lose its value.
Bixby said his 61-year-old client trusted Jacobi with more than $100,000, money he had saved after working most of his life as a mechanic and that Jacobi promised to “double his retirement savings over time.” However, Bixby said that Jacobi took advantage of the man’s trust and lack of experience with investing and denied there were problems even when the client questioned him about the stock’s performance.
Bixby says his client didn’t know his investment was “wiped out” until he asked Jacobi for some of his money as he approached retirement.
Bixby says Ameriprise also had business relationships with Ebix representing a possible conflict of interest.
“We have no comment as this matter is currently in confidential FINRA arbitration,” said Ali Mueller, Ameriprise vice president public relations and corporate communications.
Jacobi did not return a request for comment.
“The strategy recommended was wildly speculative and entirely inappropriate, unsuitable, and contrary to the best interests of clients,” the claim states. “These inappropriate recommendations and actions have had a devastating impact on the greater Pensacola community and beyond with numerous clients losing all or a substantial portion of their retirement savings.”
The claim goes on to say that Ameriprise knew or should have known that Jacobi was inappropriately recommending substantial concentrations in risky investments to clients but that the company “ignored red flags” and didn’t appropriately supervise Jacobi or protect clients as required by law.
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“Ameriprise allowed the Financial Advisor to use ‘CYA Paperwork’ which misleadingly suggested that clients were informed or warned of the risks of the inappropriate strategy,” Bixby said in the claim. “Any appropriate supervision would have quickly detected and prevented the misconduct. Instead, Ameriprise played the fiddle while the retirement savings of Claimant and other retirees and investors in the Pensacola and Gulf Breeze communities burned.”
The attorney says he has a different client who also lost her investments after working with Jacobi and he intends to file a claim on her behalf, too.
According to the website Broker Check by FINRA, Jacobi has had five disclosures or client disputes filed against him over his 37-year career as a financial advisor. One filed last August claims he recommended an unsuitable investment, and the claimant is seeking $250,000. The other disclosures were denied, or no action was taken.
If you have questions or concerns about your investment portfolio Bixby Law is hosting a free event for the public on Tuesday, Jan. 21 at 5:30 p.m. for anyone who might have been affected. The office is located at 4300 Bayou Blvd., Suite 16. You can call their office at 850-332-6945 to RSVP.
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