Broker Ariel Rivero Suspended, Fined $15K After Multiple Wrongdoings

Ariel Rivero (CRD# 4236679, a/k/a Rivero A Ariel A, Ariel A Rivero Mr.) is a previously registered broker and investment advisor last employed with Insigneo Securities, LLC (CRD# 29249) of Coral Gables, FL. His previous employers include Jefferies LLC (CRD# 2347) and Oppenheimer & Co. Inc. (CRD#:249), both of Miami, and Morgan Stanley (CRD# 149777) of Boca Raton, FL.  He has been in the industry since 2000.

Rivero was recently suspended for six months and fined $15,000 for multiple violations of firm, FINRA and SEC policies. In its investigation, FINRA found that Rivero was using WhatsApp for firm-related communications with clients, including a conversation with a customer (also his former brother-in-law) that occurred in April of 2021. In that conversation, the customer complained to Rivero about $300,000 in losses he suffered from non-traditional exchange traded funds purchased from Rivero.

In the WhatsApp conversation, Rivero offered to reimburse the customer $10,000 per month to resolve the complaint. He did not notify Jeffries about the complaint or the conversation. Rivero did not resolve the conflict, nor reimbursed him for any of the amount. The customer eventually filed an arbitration claim against both Rivero and Jeffries, and the firm settled the claim.

He also borrowed $500,000 from a firm customer in December of 2020 without notifying Jeffries in writing of his intent to borrow, nor that he had taken the loan, nor did he receive permission from the firm. Rivero has repaid more than half of the loan balance.

Using WhatsApp—Why Is It Not Allowed?

Firms like Jeffries are required to preserve all records of communications with clients by using approved communications records in compliance with Section 17(a) of the Securities Exchange Act of 1934 and Exchange Act Rule 17a-4(b)(4). This can include recorded phone lines, company emails, and official letters on company letterhead. Anything that does not include preservation as part of a customer’s record causes the company to have incomplete records. This is a violation of FINRA Rules 4511 and 2010.

WhatsApp is not an approved method of communication, and any business-related messages or discussions with a customer on the app are not included as part of a client’s record, leaving the firm out of compliance. Brokers are required to keep all business-related communications with clients in accordance with FINRA Rules 4511 and 2010 to avoid non-compliance.

Did You Invest With Ariel Rivero?  

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.