Sosa was “permitted to resign” from Sagepoint (now Osaic Services, Inc.) on 7/8/2022 when the firm discovered that he had been named contingent beneficiary and successor trustee to a client’s living trust document in their file. This violated Sagepoint’s policies and procedures. However, Sosa stated that he was unaware of these designations. The firm found no evidence that Sosa had acted as a trustee or received any benefit from the client’s trust.
Sagepoint amended Sosa’s Form U5 (termination form) after it was discovered that he had opened a new bank account on behalf of an elderly customer. He then transferred $579,000 from the customer’s account without permission into the new account over which he had access and authority. Sosa used this bank account from April 2017 through November 2018 to write checks to himself totaling $222,000. He also used the account to make payments to his personal American Express credit card totaling $111,000. These disbursements were also made without the permission of the customer.
Following the amended Form U5, FINRA began an investigation into the allegations against Sosa, who neither admitted nor denied the findings. He signed an Acceptance, Waiver & Consent (AWC) letter agreeing to FINRA’s sanctions, which consisted of being indefinitely barred from association with any FINRA member in any capacity. The bar became effective on 3/21/2024.
Silver Law Group has seen a rise in claims against financial advisors who improperly serve as a trustee or beneficiary of a client’s will or trust. Family members who learn that a financial advisor has improperly sought to benefit from a client’s will or trust should contact an attorney to learn more about their legal rights.
Financial Advisors Should Not Be Trustee’s on a Will
Conversion is when someone intentionally or knowingly exerts unapproved or unauthorized control over someone else’s property, and generally against the will of the owner. This principle can be used in a variety of different legal claims in which an owner’s rights of ownership are violated by someone else.
In the case of brokers like Sosa, “conversion” is the exertion of control (theft) over another individual’s assets. Sosa deprived the client of the use of their assets by moving it into another account where the client did not have control. Then Sosa used the funds as if they were his own, “converting” them to personal funds. Conversion is illegal, and in some cases, could also lead to criminal charges.
Did You Invest With Juan Sosa?
Silver Law Group represents investors in securities and investment fraud cases. 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.