jeffrey timothy kluge
TRANSCRIPT
BrokerCheck Report
JEFFREY TIMOTHY KLUGE
Section Title
Report Summary
Broker Qualifications
Registration and Employment History
Disclosure Events
CRD# 2187964
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2 - 3
5 - 6
7
Page(s)
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JEFFREY T. KLUGE
CRD# 2187964
This broker is not currently registered.
Report Summary for this Broker
This report summary provides an overview of the broker's professional background and conduct. Additionalinformation can be found in the detailed report.
Disclosure Events
All individuals registered to sell securities or provideinvestment advice are required to disclose customercomplaints and arbitrations, regulatory actions,employment terminations, bankruptcy filings, andcriminal or civil judicial proceedings.
Are there events disclosed about this broker? Yes
The following types of disclosures have beenreported:
Type Count
Regulatory Event 2
Criminal 1
Customer Dispute 7
Investment Adviser RepresentativeInformation
https://www.adviserinfo.sec.gov
The information below represents the individual'srecord as a broker. For details on this individual'srecord as an investment adviser representative,visit the SEC's Investment Adviser PublicDisclosure website at
Broker Qualifications
This broker is not currently registered.
This broker has passed:
0 Principal/Supervisory Exams
3 General Industry/Product Exams
2 State Securities Law Exams
Registration History
This broker was previously registered with thefollowing securities firm(s):
MERRILL LYNCH, PIERCE, FENNER &SMITH INCORPORATEDCRD# 7691SAINT PAUL, MN11/1991 - 12/2016
B
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Broker Qualifications
Registrations
This section provides the self-regulatory organizations (SROs) and U.S. states/territories the broker is currently registered and licensed with, thecategory of each license, and the date on which it became effective. This section also provides, for every brokerage firm with which the broker iscurrently employed, the address of each branch where the broker works.
This broker is not currently registered.
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Broker Qualifications
Industry Exams this Broker has Passed
This individual has passed 0 principal/supervisory exams, 3 general industry/product exams, and 2 state securities law exams.
This section includes all securities industry exams that the broker has passed. Under limited circumstances, a broker may attain a registrationafter receiving an exam waiver based on exams the broker has passed and/or qualifying work experience. Any exam waivers that the broker hasreceived are not included below.
Exam Category Date
Principal/Supervisory Exams
No information reported.
Exam Category Date
General Industry/Product Exams
Securities Industry Essentials Examination 12/08/2016SIEB
Futures Managed Funds Examination 01/30/1997Series 31B
General Securities Representative Examination 11/12/1991Series 7B
Exam Category Date
State Securities Law Exams
Uniform Investment Adviser Law Examination 06/29/1994Series 65IA
Uniform Securities Agent State Law Examination 12/24/1991Series 63B
Additional information about the above exams or other exams FINRA administers to brokers and other securities professionals can be found atwww.finra.org/brokerqualifications/registeredrep/.
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Broker Qualifications
Professional Designations
This section details that the representative has reported 0 professional designation(s).
No information reported.
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Registration and Employment History
Registration History
Registration Dates Firm Name CRD# Branch Location
The broker previously was registered with the following firms:
B 11/1991 - 12/2016 MERRILL LYNCH, PIERCE, FENNER &SMITH INCORPORATED
7691 SAINT PAUL, MN
Employment History
Employment Employer Name Investment RelatedPosition Employer Location
This section provides up to 10 years of an individual broker's employment history as reported by the individual broker on the most recently filedForm U4.
Please note that the broker is required to provide this information only while registered with FINRA or a national securities exchangeand the information is not updated via Form U4 after the broker ceases to be registered. Therefore, an employment end date of"Present" may not reflect the broker's current employment status.
12/2009 - Present BANK OF AMERICA, N.A. SVP; WEALTHMANAGEMENTADVISOR
Y ST PAUL, MN, United States
09/1991 - Present MERRILL LYNCH, PIERCE, FENNER &SMITH INCORPORATED
SVP; WEALTHMANAGEMENTADVISOR
Y ST. PAUL, MN, United States
Other Business Activities
This section includes information, if any, as provided by the broker regarding other business activities the broker is currently engaged in either asa proprietor, partner, officer, director, employee, trustee, agent or otherwise. This section does not include non-investment related activity that isexclusively charitable, civic, religious or fraternal and is recognized as tax exempt.
I*45358FOR PROFIT OR NOT FOR PROFIT: FOR-PROFIT ORGANIZATIONNAME OF OUTSIDE BUSINESS ORGANIZATION: KLUGE CAPITAL MANAGEMENTINVESTMENT RELATED: YADDRESS OF BUSINESS: LAKE ELMO, MINNESOTANATURE OF BUSINESS: LIMITED PARTNERSHIP,POSITION, TITLE, ASSOCIATION: FAMILY HELD,START DATE OF RELATIONSHIP: 9/22/2011NUMBER OF HOURS DEVOTED: 8 HOUR(S) MONTHLYNUMBER OF HOURS DEVOTED DURING TRADING HOURS: 2DUTIES: FAMILY LIMITED PARTNERSHIP
(2)FOR PROFIT OR NOT FOR PROFIT: NON-PROFIT ORGANIZATION- NAME OF OUTSIDE BUSINESS ORGANIZATION: IMCA- INVESTMENT RELATED: N- ADDRESS OF BUSINESS:GREENWOOD VILLAGE, CO 80111- NATURE OF BUSINESS: OTHER- POSITION, TITLE, ASSOCIATION: OTHER- START DATE OF RELATIONSHIP: 02/04/2013- NUMBER OF HOURS DEVOTED: 5 MONTHLY- NUMBER OF HOURS DEVOTED DURING TRADING HOURS: 5 MONTHLY- DUTIES: INVESTMENT MANAGEMENT CONSULTANTS ASSOCIATION WAS ESTABLISHED IN 1985 TO DELIVER THE PREMIERINVESTMENT CONSULTING AND WEALTH MANAGEMENT CREDENTIALS AND WORLD-CLASS EDUCATIONAL OFFERINGS THROUGHMEMBERSHIP, CONFERENCES, RESEARCH, AND PUBLICATIONS.
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Registration and Employment History
Other Business Activities, continued
I*45358FOR PROFIT OR NOT FOR PROFIT: FOR-PROFIT ORGANIZATIONNAME OF OUTSIDE BUSINESS ORGANIZATION: KLUGE CAPITAL MANAGEMENTINVESTMENT RELATED: YADDRESS OF BUSINESS: LAKE ELMO, MINNESOTANATURE OF BUSINESS: LIMITED PARTNERSHIP,POSITION, TITLE, ASSOCIATION: FAMILY HELD,START DATE OF RELATIONSHIP: 9/22/2011NUMBER OF HOURS DEVOTED: 8 HOUR(S) MONTHLYNUMBER OF HOURS DEVOTED DURING TRADING HOURS: 2DUTIES: FAMILY LIMITED PARTNERSHIP
(2)FOR PROFIT OR NOT FOR PROFIT: NON-PROFIT ORGANIZATION- NAME OF OUTSIDE BUSINESS ORGANIZATION: IMCA- INVESTMENT RELATED: N- ADDRESS OF BUSINESS:GREENWOOD VILLAGE, CO 80111- NATURE OF BUSINESS: OTHER- POSITION, TITLE, ASSOCIATION: OTHER- START DATE OF RELATIONSHIP: 02/04/2013- NUMBER OF HOURS DEVOTED: 5 MONTHLY- NUMBER OF HOURS DEVOTED DURING TRADING HOURS: 5 MONTHLY- DUTIES: INVESTMENT MANAGEMENT CONSULTANTS ASSOCIATION WAS ESTABLISHED IN 1985 TO DELIVER THE PREMIERINVESTMENT CONSULTING AND WEALTH MANAGEMENT CREDENTIALS AND WORLD-CLASS EDUCATIONAL OFFERINGS THROUGHMEMBERSHIP, CONFERENCES, RESEARCH, AND PUBLICATIONS.
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Disclosure Events
What you should know about reported disclosure events:
1. All individuals registered to sell securities or provide investment advice are required to disclose customer complaints and arbitrations,regulatory actions, employment terminations, bankruptcy filings, and criminal or civil judicial proceedings.
2. Certain thresholds must be met before an event is reported to CRD, for example: o A law enforcement agency must file formal charges before a broker is required to disclose a particular criminal event. o A customer dispute must involve allegations that a broker engaged in activity that violates certain rules or conduct governing the
industry and that the activity resulted in damages of at least $5,000. o
3. Disclosure events in BrokerCheck reports come from different sources: o As mentioned at the beginning of this report, information contained in BrokerCheck comes from brokers, brokerage firms and
regulators. When more than one of these sources reports information for the same disclosure event, all versions of the event willappear in the BrokerCheck report. The different versions will be separated by a solid line with the reporting source labeled.
o4. There are different statuses and dispositions for disclosure events:
o A disclosure event may have a status of pending, on appeal, or final.§ A "pending" event involves allegations that have not been proven or formally adjudicated.§ An event that is "on appeal" involves allegations that have been adjudicated but are currently being appealed.§ A "final" event has been concluded and its resolution is not subject to change.
o A final event generally has a disposition of adjudicated, settled or otherwise resolved.§ An "adjudicated" matter includes a disposition by (1) a court of law in a criminal or civil matter, or (2) an administrative
panel in an action brought by a regulator that is contested by the party charged with some alleged wrongdoing.§ A "settled" matter generally involves an agreement by the parties to resolve the matter. Please note that brokers and
brokerage firms may choose to settle customer disputes or regulatory matters for business or other reasons.§ A "resolved" matter usually involves no payment to the customer and no finding of wrongdoing on the part of the
individual broker. Such matters generally involve customer disputes.
For your convenience, below is a matrix of the number and status of disclosure events involving this broker. Further informationregarding these events can be found in the subsequent pages of this report. You also may wish to contact the broker to obtain furtherinformation regarding these events.
Final On AppealPending
Regulatory Event 0 2 0
Criminal 0 1 0
Customer Dispute 0 7 N/A
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Disclosure Event Details
When evaluating this information, please keep in mind that a discloure event may be pending or involve allegations that are contested and havenot been resolved or proven. The matter may, in the end, be withdrawn, dismissed, resolved in favor of the broker, or concluded through anegotiated settlement for certain business reasons (e.g., to maintain customer relationships or to limit the litigation costs associated with disputingthe allegations) with no admission or finding of wrongdoing.
This report provides the information exactly as it was reported to CRD and therefore some of the specific data fields contained in the report maybe blank if the information was not provided to CRD.
Regulatory - Final
This type of disclosure event may involve (1) a final, formal proceeding initiated by a regulatory authority (e.g., a state securities agency, self-regulatory organization, federal regulatory such as the Securities and Exchange Commission, foreign financial regulatory body) for a violation ofinvestment-related rules or regulations; or (2) a revocation or suspension of a broker's authority to act as an attorney, accountant, or federalcontractor.
Disclosure 1 of 2
Reporting Source: Regulator
Regulatory Action InitiatedBy:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Sanction(s) Sought: Other: n/a
Date Initiated: 09/28/2017
Docket/Case Number: 3-18237
Employing firm when activityoccurred which led to theregulatory action:
Merrill Lynch, Pierce, Fenner & Smith, Inc.
Product Type: No Product
Allegations: SEC Admin Release 34-81758, IA Release 40-4782 / September 28, 2017:The Securities and Exchange Commission ("Commission") deems it appropriateand in the public interest that public administrative proceedings be, and herebyare, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940("Advisers Act") against Jeffrey Timothy Kluge ("Respondent").The Commission finds that on March 29, 2017, Kluge pleaded guilty to two countsof bank fraud in violation of Title 18 United States Code, Section 1344 before theUnited States District Court for the District of Minnesota, in United States v. JeffreyTimothy Kluge, Crim. Information No. 17-CR-61. On 8-11-2017, a judgment in thecriminal case was entered against Kluge. He was sentenced to a prison term of 50months followed by 3 years of supervised release and ordered to make restitutionin the amount of $8,680,489.50.In his written plea agreement, Kluge admitted (and where he lacked directknowledge, acknowledged that the government has sufficient evidence to provebeyond a reasonable doubt) that:In 2001, Kluge obtained a line of credit for $150,000 from Alliance Bank. Inconnection with his application for that line of credit, Kluge falsely represented toAlliance Bank that he held shares in municipal bond funds sufficient to serve ascollateral for the line of credit. Kluge provided a falsified account statement tosubstantiate his purported municipal bond fund holdings and he pledged thepurported holdings as collateral for the line of credit.Between 2001 and November of 2016, Kluge obtained periodic increases to hisline of credit with Alliance Bank such that he had an outstanding balance on theline of more than $5.989 million in November 2016. With each renewal andincrease to the line of credit, Kluge made misrepresentations to Alliance Bank withrespect to property he pledged as collateral. Specifically, Kluge represented toAlliance Bank that he held assets in brokerage accounts at Merrill Lynch and hefurther represented that those assets could be pledged as collateral for his line ofcredit with Alliance Bank.In reality, Kluge had already pledged the assets in the brokerage accounts ascollateral for loans he had obtained from Merrill Lynch and Merrill Lynch held asecurity interest in the assets in the brokerage accounts. Kluge concealed thisinformation from Alliance Bank. In addition, Kluge provided falsified brokerageaccount statements to Alliance Bank, which made it appear that the assets in thebrokerage accounts were pledged to Alliance Bank.In or about May 2007, Kluge obtained a line of credit for $1 million from PlatinumBank. In connection with his application for that line of credit, Kluge falselyrepresented to Platinum Bank that he held assets in a Merrill Lynch brokerageaccount and further falsely represented that these assets could be pledged ascollateral for the line of credit with Platinum Bank.In reality, the assets in the brokerage account had already been pledged ascollateral for loans Kluge had obtained from Merrill Lynch, a fact which Klugeconcealed from Platinum Bank. In addition, Kluge had already pledged the sameassets as collateral for the line of credit he obtained from Alliance bank describedabove.Between 2007 and November of 2016, Kluge obtained periodic increases in hisline of credit with Platinum Bank such that he had an outstanding balance on theline of credit of more than $2.684 million in November 2016. With each renewaland increase in the line of credit, Kluge made misrepresentations to Platinum Bankwith respect to the assets in the brokerage account that he had pledged ascollateral.
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SEC Admin Release 34-81758, IA Release 40-4782 / September 28, 2017:The Securities and Exchange Commission ("Commission") deems it appropriateand in the public interest that public administrative proceedings be, and herebyare, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940("Advisers Act") against Jeffrey Timothy Kluge ("Respondent").The Commission finds that on March 29, 2017, Kluge pleaded guilty to two countsof bank fraud in violation of Title 18 United States Code, Section 1344 before theUnited States District Court for the District of Minnesota, in United States v. JeffreyTimothy Kluge, Crim. Information No. 17-CR-61. On 8-11-2017, a judgment in thecriminal case was entered against Kluge. He was sentenced to a prison term of 50months followed by 3 years of supervised release and ordered to make restitutionin the amount of $8,680,489.50.In his written plea agreement, Kluge admitted (and where he lacked directknowledge, acknowledged that the government has sufficient evidence to provebeyond a reasonable doubt) that:In 2001, Kluge obtained a line of credit for $150,000 from Alliance Bank. Inconnection with his application for that line of credit, Kluge falsely represented toAlliance Bank that he held shares in municipal bond funds sufficient to serve ascollateral for the line of credit. Kluge provided a falsified account statement tosubstantiate his purported municipal bond fund holdings and he pledged thepurported holdings as collateral for the line of credit.Between 2001 and November of 2016, Kluge obtained periodic increases to hisline of credit with Alliance Bank such that he had an outstanding balance on theline of more than $5.989 million in November 2016. With each renewal andincrease to the line of credit, Kluge made misrepresentations to Alliance Bank withrespect to property he pledged as collateral. Specifically, Kluge represented toAlliance Bank that he held assets in brokerage accounts at Merrill Lynch and hefurther represented that those assets could be pledged as collateral for his line ofcredit with Alliance Bank.In reality, Kluge had already pledged the assets in the brokerage accounts ascollateral for loans he had obtained from Merrill Lynch and Merrill Lynch held asecurity interest in the assets in the brokerage accounts. Kluge concealed thisinformation from Alliance Bank. In addition, Kluge provided falsified brokerageaccount statements to Alliance Bank, which made it appear that the assets in thebrokerage accounts were pledged to Alliance Bank.In or about May 2007, Kluge obtained a line of credit for $1 million from PlatinumBank. In connection with his application for that line of credit, Kluge falselyrepresented to Platinum Bank that he held assets in a Merrill Lynch brokerageaccount and further falsely represented that these assets could be pledged ascollateral for the line of credit with Platinum Bank.In reality, the assets in the brokerage account had already been pledged ascollateral for loans Kluge had obtained from Merrill Lynch, a fact which Klugeconcealed from Platinum Bank. In addition, Kluge had already pledged the sameassets as collateral for the line of credit he obtained from Alliance bank describedabove.Between 2007 and November of 2016, Kluge obtained periodic increases in hisline of credit with Platinum Bank such that he had an outstanding balance on theline of credit of more than $2.684 million in November 2016. With each renewaland increase in the line of credit, Kluge made misrepresentations to Platinum Bankwith respect to the assets in the brokerage account that he had pledged ascollateral.
Current Status: Final
Resolution: Order
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
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Resolution Date: 09/28/2017
Sanctions Ordered:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Bar (Permanent)
If the regulator is the SEC,CFTC, or an SRO, did theaction result in a finding of awillful violation or failure tosupervise?
No
(1) willfully violated anyprovision of the SecuritiesAct of 1933, the SecuritiesExchange Act of 1934, theInvestment Advisers Act of1940, the InvestmentCompany Act of 1940, theCommodity Exchange Act, orany rule or regulation underany of such Acts, or any ofthe rules of the MunicipalSecurities Rulemaking Board,or to have been unable tocomply with any provision ofsuch Act, rule or regulation?
(2) willfully aided, abetted,counseled, commanded,induced, or procured theviolation by any person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any of suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board? or
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(2) willfully aided, abetted,counseled, commanded,induced, or procured theviolation by any person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any of suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board? or
(3) failed reasonably tosupervise another personsubject to your supervision,with a view to preventing theviolation by such person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board?
Capacities Affected: participating in any offering of a penny stock
Duration: Indefinite
Start Date: 09/28/2017
End Date:
Sanction 1 of 2
Sanction Type: Bar (Permanent)
Sanction 2 of 2
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Regulator Statement Respondent has submitted an Offer of Settlement (the "Offer") which theCommission has determined to accept.It is ORDERED Kluge is barred from association with any broker, dealer,investment adviser, municipal securities dealer, municipal advisor, transfer agent,or nationally recognized statistical rating organization; and barred fromparticipating in any offering of a penny stock, including: acting as a promoter,finder, consultant, agent or other person who engages in activities with a broker,dealer or issuer for purposes of the issuance or trading in any penny stock, orinducing or attempting to induce the purchase or sale of any penny stock.
Capacities Affected: association with a broker, dealer, investment adviser, municipal securities dealer,municipal advisor, transfer agent, or NRSRO
Duration: Indefinite
Start Date: 09/28/2017
End Date:
Sanction Type: Bar (Permanent)
Disclosure 2 of 2
i
Reporting Source: Regulator
Regulatory Action InitiatedBy:
FINRA
Sanction(s) Sought: Suspension
Date Initiated: 03/17/2017
Docket/Case Number: 2016052377201
Employing firm when activityoccurred which led to theregulatory action:
N/A
Product Type: No Product
Allegations: Respondent Kluge failed to respond to FINRA request for information.
Current Status: Final
Resolution: Letter
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
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Resolution Date: 06/20/2017
Sanctions Ordered:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Bar (Permanent)
If the regulator is the SEC,CFTC, or an SRO, did theaction result in a finding of awillful violation or failure tosupervise?
No
(1) willfully violated anyprovision of the SecuritiesAct of 1933, the SecuritiesExchange Act of 1934, theInvestment Advisers Act of1940, the InvestmentCompany Act of 1940, theCommodity Exchange Act, orany rule or regulation underany of such Acts, or any ofthe rules of the MunicipalSecurities Rulemaking Board,or to have been unable tocomply with any provision ofsuch Act, rule or regulation?
(2) willfully aided, abetted,counseled, commanded,induced, or procured theviolation by any person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any of suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board? or
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(2) willfully aided, abetted,counseled, commanded,induced, or procured theviolation by any person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any of suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board? or
(3) failed reasonably tosupervise another personsubject to your supervision,with a view to preventing theviolation by such person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board?
Capacities Affected: All Capacities
Duration: Indefinite
Start Date: 06/20/2017
End Date:
Sanction 1 of 2
Sanction Type: Bar (Permanent)
Sanction 2 of 2
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Regulator Statement Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice ofSuspension and Suspension from Association letters dated March 17, 2017, andApril 10, 2017, respectively, on June 20, 2017, Kluge is barred from associationwith any FINRA member in any capacity. Respondent failed to request terminationof his suspension within three months of the date of the Notice of Suspension;therefore, he is automatically barred from association with any FINRA member inany capacity.
Capacities Affected: All capacities
Duration: N/A
Start Date: 04/10/2017
End Date: 06/19/2017
Sanction Type: Suspension
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Criminal - Final Disposition
This type of disclosure event involves a criminal charge against the broker that has resulted in a conviction, acquittal, dismissal, or plea. Thecriminal matter may pertain to any felony or certain misdemeanor offenses, including bribery, perjury, forgery, counterfeiting, extortion, fraud, andwrongful taking of property.
Disclosure 1 of 1
Reporting Source: Regulator
Charge Date: 03/15/2017
Current Status: Final
Status Date: 08/11/2017
Name of Court: U.S. District Court for the District of Minnesota
Location of Court: District of Minnesota
Docket/Case #: 0:17cr61
Formal Charges werebrought in:
Federal Court
Disposition Date: 08/11/2017
Sentence/Penalty: On March 29, 2017, Kluge pleaded guilty to two counts of bank fraud. On August11, 2017, a judgment in the criminal case was entered against Kluge. Kluge wassentenced to a prison term of 50 months followed by 3 years of supervised releaseon each of Counts 1 & 2 to be served concurrently. Kluge was also ordered tomake restitution in the amount of $8,680,489.50.
FormalCharge(s)/Description:
BANK FRAUD
No of Counts: 2
Felony or Misdemeanor: Felony
Plea for each charge: guilty
Disposition of charge: Pled guilty
Charge(s) 1 of 1
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Customer Dispute - Settled
This type of disclosure event involves a consumer-initiated, investment-related complaint, arbitration proceeding or civil suit containing allegationsof sale practice violations against the broker that resulted in a monetary settlement to the customer.
Disclosure 1 of 6
Reporting Source: Firm
Employing firm whenactivities occurred which ledto the complaint:
Allegations:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
The Customer alleges unauthorized trading in October 2016.
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages: $0.00
Date Complaint Received: 12/07/2016
Complaint Pending? No
Status:
Status Date: 12/19/2016
Settlement Amount: $40,004.47
Individual ContributionAmount:
$0.00
Customer Complaint Information
Settled
Alleged Damages AmountExplanation (if amount notexact):
Damages are not specified.
Is this an oral complaint? Yes
Is this a written complaint? No
Is this an arbitration/CFTCreparation or civil litigation?
No
Disclosure 2 of 6
i
Reporting Source: Firm
Employing firm whenactivities occurred which ledto the complaint:
Allegations:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
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Allegations: The Customer alleges unauthorized trading in October 2016.
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages: $0.00
Date Complaint Received: 12/07/2016
Complaint Pending? No
Status:
Status Date: 12/19/2016
Settlement Amount: $40,004.47
Individual ContributionAmount:
$0.00
Customer Complaint Information
Settled
Alleged Damages AmountExplanation (if amount notexact):
Damages are not specified.
Is this an oral complaint? Yes
Is this a written complaint? No
Is this an arbitration/CFTCreparation or civil litigation?
No
Disclosure 3 of 6
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Reporting Source: Firm
Employing firm whenactivities occurred which ledto the complaint:
Allegations:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
The Customer alleges unauthorized trading in October 2016.
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages: $0.00
Alleged Damages AmountExplanation (if amount notexact):
Damages are not specified.
Is this an oral complaint? Yes
No18�2021 FINRA. All rights reserved. Report about JEFFREY T. KLUGE.
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Date Complaint Received: 11/15/2016
Complaint Pending? No
Status:
Status Date: 12/19/2016
Settlement Amount: $40,004.47
Individual ContributionAmount:
$0.00
Customer Complaint Information
Settled
Is this a written complaint? No
Is this an arbitration/CFTCreparation or civil litigation?
No
Disclosure 4 of 6
i
Reporting Source: Firm
Employing firm whenactivities occurred which ledto the complaint:
Allegations:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
The Customer alleges unauthorized trading from October 2016 to November 2016.
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages: $0.00
Date Complaint Received: 11/16/2016
Complaint Pending? No
Status:
Customer Complaint Information
Settled
Alleged Damages AmountExplanation (if amount notexact):
Damages are not specified
Is this an oral complaint? Yes
Is this a written complaint? No
Is this an arbitration/CFTCreparation or civil litigation?
No
19�2021 FINRA. All rights reserved. Report about JEFFREY T. KLUGE.
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Status Date: 12/19/2016
Settlement Amount: $40,004.47
Individual ContributionAmount:
$0.00
Disclosure 5 of 6
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Reporting Source: Firm
Employing firm whenactivities occurred which ledto the complaint:
Allegations:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
The Customer alleges unauthorized trading in October, 2016.
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages: $0.00
Date Complaint Received: 12/07/2016
Complaint Pending? No
Status:
Status Date: 12/19/2016
Settlement Amount: $40,004.47
Individual ContributionAmount:
$0.00
Customer Complaint Information
Settled
Alleged Damages AmountExplanation (if amount notexact):
Damages are not specified.
Is this an oral complaint? Yes
Is this a written complaint? No
Is this an arbitration/CFTCreparation or civil litigation?
No
Disclosure 6 of 6
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Reporting Source: Broker
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Employing firm whenactivities occurred which ledto the complaint:
Allegations:
MERRILL LYNCH, PIERCE, FENNER AND SMITH, INC.
THIS VERBAL COMPLAINT AROSE OUT OF THE SALE OF AN AUCTION RATESECURITY (ARS) THAT WAS MADE PRIOR TO THE UNPRECEDENTEDILLIQUIDITY IN THE ARS MARKET THAT OCCURRED IN FEBRUARY 2008.
Product Type: Other: AUCTION RATE SECURITIES-- CLOSED-END FUNDS
Alleged Damages: $0.00
Date Complaint Received: 04/13/2009
Complaint Pending? No
Status:
Status Date: 04/13/2009
Settlement Amount: $2,125,000.00
Individual ContributionAmount:
$0.00
Broker Statement THIS MATTER INVOLVES THE SALE OF AUCTION RATE SECURITIES (ARS).THE TRANSACTION(S) AT ISSUE TOOK PLACE BEFORE MID-FEBRUARY2008, WHEN THE ARS MARKET SUFFERED WIDESPREAD AUCTIONFAILURES AND ILLIQUIDITY. THE FINANCIAL ADVISOR DID NOT CAUSE,CONTRIBUTE OR HAVE ANY CONTROL WHATSOEVER OVER THESEMARKET EVENTS. THE FIRM REACHED AGREEMENT WITH CERTAIN OF ITSREGULATORS, PURSUANT TO WHICH IT REPURCHASED ARS FOR THEIRFULL PAR VALUE FROM CERTAIN CLIENTS, INCLUDING THE INSTANTCLIENT, WHERE THEY COMPLAINED OR NOT. THE FINANCIAL ADVISORWAS NOT A PARTY TO THAT AGREEMENT, DID NOT MAKE ANY PAYMENT TOTHE CLIENT, AND WAS NOT ASKED TO AND DID NOT CONTRIBUTE TO THEREPURCHASE AMOUNT. THE SETTLEMENT AMOUNT IN ITEM 11 ABOVEREFLECTS THE PAR VALUE OF THE REPURCHASED ARS, AS REQUIRED BYFINRA REGULATORY NOTICE 09-12.
Customer Complaint Information
Settled
Alleged Damages AmountExplanation (if amount notexact):
UNSPECIFIED
Is this an oral complaint? Yes
Is this a written complaint? No
Is this an arbitration/CFTCreparation or civil litigation?
No
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THIS MATTER INVOLVES THE SALE OF AUCTION RATE SECURITIES (ARS).THE TRANSACTION(S) AT ISSUE TOOK PLACE BEFORE MID-FEBRUARY2008, WHEN THE ARS MARKET SUFFERED WIDESPREAD AUCTIONFAILURES AND ILLIQUIDITY. THE FINANCIAL ADVISOR DID NOT CAUSE,CONTRIBUTE OR HAVE ANY CONTROL WHATSOEVER OVER THESEMARKET EVENTS. THE FIRM REACHED AGREEMENT WITH CERTAIN OF ITSREGULATORS, PURSUANT TO WHICH IT REPURCHASED ARS FOR THEIRFULL PAR VALUE FROM CERTAIN CLIENTS, INCLUDING THE INSTANTCLIENT, WHERE THEY COMPLAINED OR NOT. THE FINANCIAL ADVISORWAS NOT A PARTY TO THAT AGREEMENT, DID NOT MAKE ANY PAYMENT TOTHE CLIENT, AND WAS NOT ASKED TO AND DID NOT CONTRIBUTE TO THEREPURCHASE AMOUNT. THE SETTLEMENT AMOUNT IN ITEM 11 ABOVEREFLECTS THE PAR VALUE OF THE REPURCHASED ARS, AS REQUIRED BYFINRA REGULATORY NOTICE 09-12.
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Customer Dispute - Closed-No Action / Withdrawn / Dismissed / Denied
This type of disclosure event involves (1) a consumer-initiated, investment-related arbitration or civil suit containing allegations of sales practiceviolations against the individual broker that was dismissed, withdrawn, or denied; or (2) a consumer-initiated, investment-related written complaintcontaining allegations that the broker engaged in sales practice violations resulting in compensatory damages of at least $5,000, forgery, theft, ormisappropriation, or conversion of funds or securities, which was closed without action, withdrawn, or denied.
Disclosure 1 of 1
Reporting Source: Firm
Employing firm whenactivities occurred which ledto the complaint:
Allegations:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
The administrator of the estate alleges unsuitable investment recommendationsfrom March 2004 until October 2008.
Product Type: Other: Closed-End Funds
Alleged Damages: $0.00
Date Complaint Received: 04/18/2021
Complaint Pending? No
Status:
Status Date: 05/11/2021
Settlement Amount:
Individual ContributionAmount:
Customer Complaint Information
Denied
Alleged Damages AmountExplanation (if amount notexact):
Damages are not specified.
Is this an oral complaint? No
Is this a written complaint? Yes
Is this an arbitration/CFTCreparation or civil litigation?
No
23�2021 FINRA. All rights reserved. Report about JEFFREY T. KLUGE.
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