Diaz was also fined $10,000 amid allegations of fraud, negligence, unsuitability and misrepresentation
After a 14-year career in the securities industry marred by 44 disclosure events, Anthony Diaz has been permanently barred from acting as a broker and fined $10,000 by FINRA on June 10, 2015. This follows allegations of dishonest and unethical practices, according to FINRA’s report on the matter.
Between December 11, 2014 to May 12, 2015, Diaz was named in 20 customer disputes that are currently pending review by FINRA and one that was settled for $10,000. The amount of damages alleged against Diaz in just those five months total more than $7.3 million. According to the FINRA website, he was working for First Allied Securities, Inc., in Scotrun, Pennsylvania, when the alleged infractions occurred and continued at his subsequent firms.
The allegations made in the customer disputes range from fraud, negligence and unsuitability to misrepresentation, among other charges. In addition to the pending disputes, Diaz has been involved in several disputes that were withdrawn or denied, two that were settled for a combined $25,000 and three in which the customers were awarded a total of more than $277,000, according to FINRA records.
According to FINRA reports of Diaz’s employment separations, in 2002 he was discharged from his employment with Edward Jones after allegedly providing inaccurate information regarding his ex-wife to a field supervisor. In 2010, he was let go from SII Investments, Inc., for alleged unauthorized trading, and in 2011, he was discharged from Kovack Securities, Inc., after the firm received multiple complaints that Diaz made trades in their accounts without authorization. He was discharged from Sandlapper Securities LLC a little more than a year later in September 2012 after an internal investigation at the firm led to allegations that he was selling annuities without the proper authorization to do so.
When recommending a potential investment to their client, a broker must provide the investor with all material information known to him or her, including fees and degree of risk. He or she must also have a reasonable basis for any claims made regarding the potential investment. It is unlawful for anyone to misrepresent or omit information during the sale of a security and losses occurring because of these actions may be pursued through securities arbitration.
Brokerage firms and their associated members are also required to learn as much about their customer’s investment profile as possible before they recommend a securities transaction or investment strategy. While an executive with significant net worth and investing experience may take on speculative investments as part of his or her portfolio, they would be totally unsuitable for an elderly widow living on a fixed income. Brokers are required to know this and make recommendations accordingly. What is unsuitable ultimately depends on an investor’s portfolio, but for most these would include illiquid, hard to valve, complex and high risk investments.
If you are an investor who has lost money due to the actions of Anthony Diaz or any other financial advisor, you should be aware of your rights and seek legal counsel to pursue them.
At Silver Law Group, our securities fraud attorneys are equipped with skills and experience to help you navigate your legal rights to loss recovery through securities arbitration. We will provide you with a complimentary consultation and the understanding that each case is handled on a contingent-fee basis in which you will only have to pay legal fees if Silver Law Group wins your case.
The actions of financial advisers should not negatively affect your financial future, and Silver Law Group is here to help. Contact us today for your free consultation.