Haselkorn & Thibaut, a national investment fraud law firm with over 50 years of combined experience and a 98% success rate, has opened an investigation into financial advisor Jesse Krapf and his conduct at Spartan Capital Securities. As part of our ongoing commitment to investor protection, we are examining complaints, regulatory actions, and trading patterns connected with Mr. Krapf.
Who is Jesse Krapf?
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Jesse Krapf (CRD #: 5467277) began his career in 2008. Over the years, he has worked for approximately 10 different brokerage firms, including Benchmark Investments, Newbridge Securities, and most notably, Spartan Capital Securities. This frequent change of affiliations can be a red flag for investors, as the industry tends to see higher complaint rates among brokers moving between multiple firms.
Summary of Regulatory and Investor Complaints
Our research shows several notable disclosures and disciplinary actions. Investors have filed multiple complaints addressing issues such as:
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Excessive trading/churning
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Unsuitable investment recommendations
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Failure to supervise
Table: Key Complaints and Allegations Against Jesse Krapf
| Date | Allegation Type | Details | Firm |
|---|---|---|---|
| Oct 2018 | Negligence/Breach of Duty | Claimant alleged damages of $500,000; pending | Benchmark Investments |
| Mar 2025 | Excessive trading | Churning, failure to supervise | Spartan Capital Securities |
| Apr 2025 | High-frequency trading | Unsuitable investments alleged | Spartan Capital Securities |
| May 2025 | Unsuitable trading | Investor claimed excessive trading recommended | Spartan Capital Securities |
Notably, a regulatory action was brought by FINRA in late 2024. Krapf agreed to a five-month suspension for alleged excessive trading, which resulted in substantial losses and unusually high commissions charged to customer accounts. According to FINRA, between 2019 and 2022, Krapf allegedly made 58 transactions for one client, totaling $41,017 in losses and $92,847 in commissions. This activity led to claims for damages and formal action against him.
What Is Churning and Why Is It a Problem?
Churning, or excessive trading in a client’s account, is a practice where a broker trades frequently, often to generate commissions rather than investor returns. FINRA’s Rule 2111 (“The Suitability Rule”) requires brokers to make recommendations tailored to client needs, risk tolerance, and investment objectives. If a broker has “de facto control” of an account and trades without legitimate justification, investors are exposed to unnecessary costs and risks.
Churning is a well-recognized form of investment abuse. Its red flags include high turnover rates and cost-to-equity ratios—regular benchmarks used by regulators to spot questionable conduct. As an example, Krapf’s account turnover rate reached an annualized 23 (well above the churning threshold of 6) and cost-to-equity ratios topped 104%, much greater than the typical warning level of 20%.
Pattern of Conduct and Industry Concerns
Data indicates that Krapf’s career has involved rapid movement between firms, several customer complaints, and regulatory actions. This pattern is a serious concern: research shows that brokers with a history of customer complaints are disproportionately represented at firms with less rigorous supervision and hiring standards. Customers must be wary of such patterns, as they often signal higher risks for unsuspecting investors.
In addition to trading issues, Krapf has unresolved debt and tax liens, further complicating his professional background. Financial mismanagement by an advisor should always be seen as an important factor when evaluating trustworthiness.
What Investors Need to Know
It is essential for investors to:
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Periodically review BrokerCheck for updates on advisors
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Understand the costs and risks of every recommended investment
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Be aware of high-frequency, commission-generating trading, particularly in retirement accounts or accounts meant for capital preservation
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Act promptly if losses or irregular activities occur
For direct, up-to-date information regarding Jesse Krapf and any regulatory actions, investors should visit FINRA’s BrokerCheck.
Haselkorn & Thibaut is actively investigating claims involving Jesse Krapf and Spartan Capital Securities, looking for patterns of misconduct and investor harm.
How Haselkorn & Thibaut Can Help
Our firm provides free consultations and operates on a “no recovery, no fee” basis. If you believe you have suffered losses related to Jesse Krapf or Spartan Capital Securities, or your account shows signs of churning, excessive fees, or unsuitable investments, take proactive steps.
Contact Haselkorn & Thibaut at 1 888-885-7162 today for a confidential, free case review. Our attorneys have recovered millions for defrauded investors and are committed to providing clear, compassionate guidance every step of the way.
Why Choose Us?
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Over 50 years of experience
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98% success rate
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Free case evaluation
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National reach and personalized service
Conclusion
The case of Jesse Krapf highlights the importance of vigilance in working with financial advisors. From excessive trading claims to major regulatory investigations, the issues documented should not be ignored. Investors deserve transparency, diligence, and protection—qualities that Haselkorn & Thibaut fight for every day.
If you have questions, concerns, or suspect losses, reach out now. Our team will help you understand your options and pursue justice.
Call today: 1 888-885-7162.
For more facts about Jesse Krapf’s regulatory history or to check on any advisor, visit BrokerCheck.
