Our firm is investigating Edward Jones financial advisor and stockbroker Jared Thomas Colao (CRD# 6417464) of Trinity, Florida for potential investment-related misconduct involving a 401(k) rollover and unexpected tax consequences.
Financial Advisor’s Career History
According to FINRA BrokerCheck, Jared Thomas Colao has been registered with Edward Jones (CRD# 250) since August 2016 and works out of the firm’s branch office located at 10720 State Road 54 in Trinity, Florida. He is licensed as a General Securities Representative with FINRA and multiple U.S. exchanges and is approved to do business in more than twenty U.S. states and territories.
Colao entered the securities industry in 2016 after previously working in non-investment roles at Erie Insurance Company as a First Notice of Loss Representative and as a student at Gannon University in Erie, Pennsylvania. He has passed the Securities Industry Essentials Examination, the Series 7 General Securities Representative Examination, and the Series 66 Uniform Combined State Law Examination, and has reported the Certified Financial Planner (CFP) designation.
In addition to his duties at Edward Jones, Colao has disclosed outside business activities involving rental properties in Riverview, Florida, and an ownership interest in Thomas Julian Properties, LLC, which supplies short-term rental properties near Orlando, Florida, through a property management company.
Jared Thomas Colao Fraud Allegations and Investor Complaints Explained
FINRA BrokerCheck currently reports one customer dispute disclosure involving Jared Thomas Colao.
2022 Customer Dispute Over 401(k) Rollover and Loan Close-Out
On or about October 12, 2022, a client submitted a written complaint concerning the handling of a 401(k) rollover that involved Empower, Edward Jones, and Colao as the financial advisor. The client alleged that, despite making it clear to all parties that he wanted to avoid tax consequences and keep his existing 401(k) loan in place, the account was processed in a way that resulted in the close-out of the outstanding loan and associated tax consequences.
Key details reported in the disclosure include:
- Type of disclosure: Customer dispute – settled
- Date complaint received: October 12, 2022
- Product type: “Other: Managed/Wrap Accounts (in-house)”
- Allegations: Mishandling of a 401(k) rollover and loan close-out, leading to unwanted tax consequences despite the client’s stated desire to keep the loan in place
- Alleged damages: No specific dollar amount alleged; the firm reported it could not in good faith determine that the damages were less than $5,000
- Complaint status: Not an arbitration or civil lawsuit; written customer complaint only
- Resolution status: Settled on January 30, 2023
- Settlement amount: $298, paid by the firm
- Individual contribution by Colao: $0
In his BrokerCheck statement, Colao indicated that, after investigation, he helped the client find a solution to repay the existing loan without additional tax consequences, that the client was satisfied and appreciative of his efforts, and that the $298 payment from the firm was a “service gesture” to reimburse additional CPA expenses associated with the tax issue.
Summary of Reported Disclosures
Based on the current BrokerCheck report, the only disclosure involving Jared Thomas Colao is the 2022 customer dispute described above. There are no reported regulatory actions, criminal events, terminations after allegations, or financial compromise events (such as bankruptcies or liens) at this time.
- Customer Dispute – 401(k) Rollover / Tax Consequences (2022):
- Alleged mishandling of a 401(k) rollover and outstanding plan loan, resulting in unanticipated tax consequences
- Involves Empower, Edward Jones, and the financial advisor
- Written complaint, not an arbitration or court case
- Settled in January 2023 for $298, paid solely by the firm, with no individual payment from Colao
As always, investors should understand that a customer complaint or settlement does not necessarily prove wrongdoing; many firms choose to settle for business reasons and disputes may be resolved without any admission of liability.
To obtain a copy of Jared Thomas Colao’s FINRA BrokerCheck report, visit this link
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111 (Suitability) requires brokers and their firms to have a reasonable basis to believe that any recommended transaction or investment strategy is suitable for the customer in light of that customer’s investment profile, including financial situation, tax status, risk tolerance, and investment objectives. In the context of the 401(k) rollover complaint against Jared Thomas Colao, attorneys would examine whether the recommendation and processing of the rollover — including the decision that triggered the close-out of the existing 401(k) loan and the resulting tax consequences — were suitable given the client’s clear objective to avoid tax liability and keep the loan in place. If a broker recommends or facilitates a rollover without properly analyzing how an outstanding plan loan will be treated and what tax impact the client will face, that conduct can be alleged to violate Rule 2111’s customer-specific suitability obligations.
FINRA Rule 2090 (Know Your Customer) requires member firms to use reasonable diligence, at account opening and on an ongoing basis, to know and retain the essential facts concerning every customer and the authority of each person acting on the customer’s behalf. Essential facts include information needed to service the account properly, follow any special handling instructions, and comply with applicable laws and regulations. In the dispute involving Jared Thomas Colao, the client allegedly made it clear to Empower, Edward Jones, and the advisor that he wanted to avoid tax consequences and keep his 401(k) loan in place. If the firm did not properly document, understand, or follow those instructions when handling the rollover, investors could argue that the firm and advisor failed to satisfy their Know Your Customer obligations under Rule 2090 by not adequately appreciating the client’s tax concerns, the existence of the plan loan, and how the transaction structure would affect that loan.
FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) is a broad ethics rule that requires member firms and their associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business. Even when a case does not involve a formal regulatory action, conduct that reflects poor communication, mishandling of client instructions, or processing transactions in a way that causes avoidable harm can still be characterized as inconsistent with Rule 2010. In a 401(k) rollover scenario like the one alleged against Jared Thomas Colao — where a client claims he repeatedly emphasized his desire to avoid tax consequences and preserve an outstanding loan — attorneys may contend that any failure to coordinate with the plan provider, to explain the tax treatment of the loan, or to structure the rollover in line with those instructions could fall short of the high ethical and professional standards required by Rule 2010, even if the matter ultimately settled for a relatively small “service gesture” payment
For over 45 years, Robert Wayne Pearce has helped investors recover losses caused by broker fraud, negligence, and unsuitable recommendations. His firm, The Law Offices of Robert Wayne Pearce, P.A., represents clients nationwide on a no-recovery, no-fee basis. Call (800) 732-2889 or email pearce@rwpearce.com for a free case review with an experienced securities attorney.