SEC Files Civil Suit Against Eric Cobb

Eric Cobb (CRD #: 2623064), a broker formerly registered with Raymond James Financial Services, has been sued by the SEC, according to his BrokerCheck record, accessed on January 5, 2025. Read on if you have questions about his alleged conduct as a broker.

SEC Civil Suit

On December 12, 2024, the Securities and Exchange Commission filed a civil complaint alleging that Eric Cobb engaged in a fraudulent cherry picking scheme from approximately January 2019 to at least April 2022.

The SEC alleged that Eric Cobb engaged in block trading, placing securities trades in an aggregated account and then waiting at least one day after execution to allocate the trades between client accounts and accounts held by him and his wife. He allegedly then assigned profitable trades to his own accounts and unprofitable trades to the accounts of his clients.

In particular, he allegedly focused on volatile and high-risk securities like leveraged exchange-traded funds (ETFs), as well as non-leveraged ETFs and investments based on volatile commodities like precious metals and mining. He allegedly chose these speculative investments to maximizee his ability to take advantage of large price changes and avoid losses.

However, this strategy was allegedly unsuitable and against the best interests of some of the clients, whose financial profiles did not support a high-risk investment strategy.

Eric Cobb allegedly gained $170,000 in net illicit profits from this scheme, and caused his clients approximately $188,000 in total losses.

This civil complaint is currently pending.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile, which contains information about their risk tolerance, investing experience, and investment goals.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

Termination from Raymond James Financial Services

On February 5, 2016, Eric Cobb was fired from Raymond James Financial Services and Raymond James Financial Services Advisors following allegations that he violated firm policies and FINRA rules regarding communications with the public, and that he had received a Letter of Caution from FINRA for the same alleged violations at his previous firm.

FINRA Rule 2210

FINRA Rule 2210 defines how firms and brokers are permitted to communicate with the public (e.g., in advertising). This rule requires all communications with the public to be fair and balanced and free from any false or misleading statements.

Background Information

Eric Cobb has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Investment Adviser Law Examination – Series 65
• Uniform Securities Agent State Law Examination – Series 63

He has also worked for the following firms:

• Raymond James Financial Services (CRD#:6694)
• Morgan Stanley (CRD#:149777)
• Morgan Stanley & Company (CRD#:8209)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)

Kurta Law Can Help

If you worked with Eric Cobb and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.