Originally Syndicated on May 13, 2024 @ 3:20 pm
Recently, I came across the case of Jeff Nimmow.
After going through his promotional material, it seemed obvious that his marketing team was running a reputation laundering campaign.
This article will try to figure out the reason why a financial advisor is employing a marketing tactic usually employed by criminals and convicts. Also, it will go over his own professional history and claims to help prospective customers decide if he’s worthy of their trust.
About Jeff Nimmow – A Barred Advisor Claiming to be Legit
Jeff Nimmow is a financial advisor and the President of Legacy Financial Network and Retirement Services, based in Sauk City, Wisconsin. He was previously a registered representative of Forest Securities from August 2015 to March 2018, working at a branch office in Merrimac, Wisconsin.
Nimmow is a financial advisor who manages investment portfolios and offers financial planning services. He has been in the financial industry for several years, building his career and eventually becoming the owner and president of his own firm, Legacy Financial Network.
Why Was Jeff Nimmow Barred by FINRA?
Jeff Nimmow has a long history of facing administrative and regulatory actions from financial authorities because of his illicit activities.
When you look through the list of administrative actions taken by the OCI (Office of the Commissioner of Insurance) of Wisconsin in 2022, Jeff’s name appears immediately.
According to the OCI, Jeff Nimmow had agreed to pay a forfeiture of $12,000 after an administrative hearing. He had faced allegations of selling unregistered securities to insurance customers.
You’d hope that the President of Legacy Financial Network would have stopped there but he doesn’t.
He has been involved in serious scams worth multiple millions of dollars.
When Law Firms were Looking for Jeff Nimmow’s “Victims” to Build Cases:
Just a while ago, law firms were looking for the victims of Jeff Nimmow’s securities fraud related to Woodbridge Group of Companies.
Jeff was a financial advisor and registered representative of Forest Securities from August 2015 to March 2018. Forest Securities had fired him as well when the Wisconsin authorities sued Jeff Nimmow for scamming investors out of $3.5 million.
Jeff had sold investors millions of securities which ended up having no value.
His scheme of financial fraud resulted in him getting barred for 48 months.
According to his FINRA Brokercheck profile, he is barred at the time of writing this article.
His FINRA profile also shows that he has 5 disclosures. A disclosure indicates a legal proceeding or a client dispute. 5 is a lot.
First Disclosure (2020):
In the first disclosure, Nimmow consented to the sanction that he sold promissory notes to investors without disclosing or receiving approval from his member firm (Forest Securities). Those promissory notes were for a self-advertised real estate investment fund and were unregistered securities.
Nimmow had earned around $177,000 in commissions. later, he filed for a Chapter 11 Bankruptcy.
The SEC filed a complaint regarding that fund and its owner, claiming it was a Ponzi scheme. This disclosure resulted in him getting barred permanently.
Second Disclosure (2018):
In the second disclosure, it’s alleged that from February 2017 to August 2017, the Representative requested customers to provide loans to Woodbridge group of enterprises Fund III. Following the approval of Outside Business Activity by Forest Securities, Inc., the representative proceeded to offer Woodbridge through Legacy Financial Network & Retirement Services, Inc., a company solely owned by the representative. Forest did not receive any compensation for these transactions.
Victims requested $150,000 in damages. The case is pending.
Third Disclosure:
The third litigation didn’t specify any allegations and no action was taken. Here, the damage amount requested was $200,000.
Fourth Disclosure:
Jeff Nimmow’s fourth disclosure is about his firing from Forest Securities. They fired him due to his unauthorized sales of Woodbridge funds.
Fifth Disclosure:
There’s a pending dispute of 2018 involving Jeff Nimmow. Here, the claimant asserts that from late 2015 to November 2017, the Nimmow actively sought customers to lend money to the Woodbridge group of firms across different investment funds. After obtaining approval from Forest Securities, Inc. to sell First Position Commercial Mortgages, the representative presented Woodbridge through Legacy Financial Network & Retirement Services, Inc., a company that the representative solely owns. Forest did not receive any compensation for any transaction.
The damages requested in this case are $450,000.
The Reputation Laundering Campaign of Jeff Nimmow
Considering the large number of legal and customer disputes Nimmow was involved in, he clearly would want to hide them from the public eye.
Why would anyone want to work with a financial advisor who is barred by FINRA?
However, his marketers seem to be employing illicit tactics to “bury” Nimmow’s professional history.
For example, the name of Nimmow’s financial advisory firm is Legacy Financial Network and Retirement Services which is almost the same as the highly reputed Legacy Financial Network.
The only difference is his firm’s name has two more words.
Furthermore, there are multiple press releases promoting Jeff Nimmow as a highly experienced financial advisor. Not to mention, he has changed his name from Jeffry Nimmow to Jeff Nimmow.
There’s a name for such dubious marketing tactics. It’s called reputation laundering.
Reputation laundering is a strategic process used by individuals or entities to obscure or cleanse a negative public image by engaging in actions that create a facade of positivity or social responsibility. This practice involves covering up misdeeds, negative business practices, or illegal actions to improve public perception.
Reputation laundering often includes tactics like making donations to universities, and charities, or aligning with popular causes to divert attention from negative aspects. It differs significantly from reputation repair, which focuses on acknowledging and rectifying mistakes to genuinely improve a company’s image.
In this case, it involves deliberately hiding facts and using a name similar to another reputed organization to make it difficult to find out their reality.
The rise of reputation laundering has led to the emergence of a specialized industry involving PR firms, lawyers, lobbyists, and image consultants who assist clients in reshaping public opinion through various means, including media manipulation and misinformation campaigns.
There are several organizations that are fighting such problems prevalent in our modern culture. One such organization is the Anti-Corruption Data Collective.
Conclusion
Jeff Nimmow’s case is rather unique. I hope the above post helped you decide if he’s worth your money.
If you want to help the fight against reputation laundering, be sure to support organizations like ICIJ and ACDC. They are leading the fight against such misinformation campaigns.
What are your thoughts on this post? Let me know in the comments.
Thanks for shedding light on this subject. It’s crucial for clients to be fully informed about the background of their financial advisors to make an educated decision.
This article highlights the importance of due diligence. It’s always advisable for customers to research and verify the credentials of financial advisors independently.
The issue of reputation laundering is alarming but not new in the financial sector. Potential clients should be aware of these tactics and proceed with caution.
Would be interested to know more about the measures that regulatory bodies are taking to prevent such individuals from continuing in the advice industry.
It’s concerning to read about these kinds of cases. It underlines the need for stricter enforcement of financial regulations to protect consumers.