Securities Arbitration Lawyers BlogFINRA Bars Jesus Rodriguez After Using Client’s Credit Line
Jesus Rodriguez (CRD# 4888685) is a former broker and investment advisor whose last known employer was Morgan Stanley (CRD#:149777) of El Paso, Texas. His former employers are Citigroup Global Markets Inc. (CRD# 7059) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691), also of El Paso. He has been in the industry since 2005.
Rodriguez has a total of nine disclosures, all from 2021. The earliest, filed on 7/15/2021, alleges that Rodriguez used a customer’s credit line for his own personal benefit. This claim is currently pending, and requests damages of $61,431.00. He voluntarily resigned from Morgan Stanley on 8/6/2021 when the allegations came to light.
Two customer disputes filed on 8/23/2021 have nearly identical allegations of improper withdrawals (one from 2017 through 2020). These two disputes were settled for $376,532.96 and $30,470.00, respectively.
Two additional disputes, filed on 9/9/2021 and 9/28/2021, are currently pending, with allegations of fraudulent withdrawals, misappropriation of funds, and unauthorized trades. Both claims include “damages unspecified.”
FINRA began its investigation on receipt of Rodriguez’s Form U5 from Morgan Stanley. Staff contacted him on 10/8/2021 and 10/15/2021 by mail, requesting related documentation. Legal counsel for Rodriguez responded to FINRA’s request, acknowledging receipt of the request, and stating that he would not be providing any of the requested information or documentation at any time.
As a result, FINRA responded by permanently barring Rodriguez from affiliation with any FINRA broker-dealer, effective 11/29/2021. Rodriguez signed a letter of Acceptance, Waiver & Consent (AWC) to resolve the matter, neither confirming nor denying the findings.
Broker Misconduct
The Rodriguez case highlights one of many ways that brokers get into trouble. In most cases, it comes down to the same thing—mishandling client funds, or some other financial-related wrongdoing. There are multiple names for this misconduct, including:
- Breach of fiduciary duty
- Unauthorized trades
- Churning
- Misappropriation
- Selling away
- Overconcentration
Spotting these issues is the first step to putting a stop to it, and possibly reclaiming losses. FINRA also offers arbitration services for those who have been harmed by a stockbroker or investment advisor.
If you see:
- A sudden uptick in trade confirmations
- An unexpected and surprising change in the composition of your portfolio
- Changing between different variable annuity contracts or mutual fund families
- Pressure from your broker to quickly purchase an investment you’re not sure about
- High concentrations in one product or security in your portfolio
- Your account is under-performing in relation to the current market
- Large margin purchases
- Promises of “guaranteed return on investment” and “protection against market losses”
- Other things you aren’t sure about
It’s time to start asking questions. Additionally, if you believe your account was mismanaged or your financial advisor improperly handled your funds, you should seek counsel to protect your rights and help get back your money.
Did You Invest With Jesus Rodriguez?
Silver Law Group represents investors in securities and investment fraud cases. Scott Silver is a nationally recognized investor advocate and the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Considered to be one of the best securities attorneys in the United States, Scott regularly lectures at industry conferences, law schools and elsewhere about investor rights and recovering money from ponzi schemes and other investment frauds.
Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.