Additional Information for Collaborative Financial Consulting, LLC

DFPI vs Collaborative Financial Consulting, LLC

The Commissioner of the Department of Financial Protection and Innovation (“Commissioner”) finds that:  At all relevant times, Jason Reynolds (CRD# 732394) (“Reynolds”) is and was the sole operator of CFC.  At all relevant times Reynolds and CFC conducted business via the telephone number (310) 770-1265 and the email [email protected]. They also maintained a public profile on Yelp.com that offered Personal Financial Consulting: Retirement Planning, and Investment Management. 

From March 1996 through June 26, 2019, Reynolds was an investment adviser representative of various, licensed investment adviser firms, but was terminated on June 26, 2019, and since then has not been employed by any registered broker-dealer or investment advisor nor has he or CFC ever applied to the Commissioner to conduct business as a broker-dealer or investment adviser in California. 

Despite his termination, Reynolds and CFC continued to engage in the business of an investment adviser including soliciting clients via flyers and emails; offering investment adviser services; touting specific stocks; and gaining access to at least one client’s investment account. Reynolds and CFC have provided investment advisory services in California to at least 10 clients, collecting at least $54,500 in investment advisory fees. 

Reynolds and CFC offered, sold, and effected securities transactions, in California, including, purchasing and selling securities on multiple occasions for at least one customer through their FIDELITY investment accounts, without a registration. 

In connection with these securities transactions, Reynolds and CFC made untrue statements of material facts, including but not limited to:

a. Falsely representing that Reynolds was a Registered Representative. In fact, he has not been a Registered Representative since June 26, 2019.

b. Falsely representing that securities and advisory services were offered through “Independent Financial Group, LLC (IFG), a registered broker-dealer and investment advisor. Member FINRA/SIPC.” In fact, Reynolds has not been employed by IFG since February 21, 2019. 

c. Falsely representing that Reynolds holds licenses in CA, NV, ID, PA, NY, WV, GA, and TN. In fact, he has held no licenses in CA, NV, ID, PA, WV, GA, and TN since July 22, 2019, and has not held a license in NY since February 21, 2019. 

d. Falsely representing that Reynolds holds Series 7, 63, and 66 Licenses. In fact, he has not held such licenses since June 26, 2021. 

e. Promising a 30%+ Profit on every trade. In fact, under Reynolds’ management, the investor’s accounts achieved negative returns. 

Based upon the foregoing, the Commissioner of Financial Protection and Innovation, finds that Reynolds and CFC have effected transactions in securities as broker-dealers without having first applied for and secured from the Commissioner a certificate, then in effect, authorizing these persons to act in that capacity.

 Jason Reynolds and Collaborative Financial Consulting, LLC are hereby ordered to desist and refrain from effecting any transaction, in, or inducing, or attempting to induce the purchase or sale of, any security in this state, unless and until they have first applied for and secured from the Commissioner a certificate authorizing them to act as a broker-dealer, or unless exempt. 

Further, the Commissioner is of the opinion that Reynolds and CFC have conducted business as an investment adviser in this state without first securing from the Commissioner a certificate, then in effect, authorizing them do so or unless they are exempt, in violation of Corporations Code section 25230. Moreover, neither Reynolds nor CFC are exempt from Corporations Code section 25230. Jason Reynolds and Collaborative Financial Consulting, LLC are hereby ordered to desist and refrain from acting as an investment adviser in the State of California unless and until they have first applied for and secured from the Commissioner a certificate authorizing them to act as an investment adviser, or unless exempt. 

Further, the Commissioner is of the opinion that CFC and Reynolds offered, bought, and sold securities, in this state, by means of a written or oral communication which included an untrue statement of material fact or omitted to state a material fact necessary to make the statement made, in light of the circumstances under which they were made, not misleading. Jason Reynolds and Collaborative Financial Consulting, LLC are hereby ordered to desist and refrain from offering or selling or buying or offering to buy any security in the State of California, by means of any written or oral communication which includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.