The Securities and Exchange Commission has barred an advisor for 10 years after accusing him of losing $2 million for clients by putting them in unsuitable investments, including concentrated stock and option positions and also misrepresenting real estate deals.

The agency said last week that it had barred Scottsdale, Ariz., advisor Jacob C. Glick, formerly of Advanced Practice Advisors and IGA Capital, from association with any broker-dealer or investment advisor, as well as other types of organizations, for 10 years. The agency brought charges against him in 2022, saying that between 2016 and 2018 he had used his discretionary authority as an advisor to put clients in risky and unsuitable investments that ultimately lost them $2 million, in part by concentrating stock and options positions on a single company, Rite Aid.

The agency also said that he’d misappropriated investments after misrepresenting a private placement offering that would invest in real estate.

“In an effort to hide the losses from his private placement clients,” the SEC said, adding that the 39-year-old Glick “engaged in a scheme to defraud.” The SEC also said in its complaint “that Glick obtained over $675,000 from an elderly advisory client and invested her in an unsuitable long-term investment property, while using her remaining funds to pay off his personal debts, including to repay the advisory clients who invested in his private placement offering.”

What’s more, the SEC said Glick sold a cell phone he’d used to advise clients via text, failing to preserve client communications.

In October 2022, the U.S. District Court for the District of Arizona ordered Glick to pay $868,048, including $725,140 in civil penalties, plus $116,594 in disgorgement and $26,314 in interest. However, Glick filed for Chapter 13 bankruptcy. The adversary proceeding by the SEC asking that the funds be disgorged was later terminated and it’s not clear if Glick was forced to pay or settle the amounts. The industry bar says that re-entry into the industry after 10 years is contingent on payment of court ordered disgorgement and civil penalties.

Glick was fired by Advanced Practice Advisors in 2017, according to his BrokerCheck page, and the company said in its disclosure that it had terminated him for reckless disregard of client suitability. (Before he was with Advanced Practice he'd served time with J.P. Morgan Securities and Chase). After he was fired by Advanced Practice, the SEC said he registered IGA Capital as an advisory in the state of Arizona (though the agency said the registration was later withdrawn and that he no longer works in the securities industry).

According to the SEC’s original complaint, Glick told clients that IGA would raise capital for real estate projects; he prepared a private placement memorandum and said that he would not invest proceeds until $2.5 million had been raised. After two clients invested $250,000, the SEC said Glick did not invest the money as he said he would. Instead, “Glick used his clients’ money to make an unsecured loan to a friend and he used over $100,000 of their money for his own personal use, which he never disclosed to the two clients who invested in IGA Capital,” the complaint said. The agency said that Glick also defrauded the elderly widowed client by taking the $675,000 to put it into a real estate investment, but used more than $300,000 for personal use.”

Glick’s attorney, when reached, said he was surprised by the new SEC announcement since the matter was closed a couple of years ago. The attorney listed on Glick’s bankruptcy filing did not return a phone call seeking comment.