FINRA Fines and Suspends Robert Estevez

The broker’s unsuitable recommendations caused clients to lose money

In September of 2016, broker Robert Estevez received a fine and suspension from the Financial Industry Regulatory Authority (FINRA). The penalties were the result of an investigation by the agency that discovered Estevez made unsuitable recommendations to his clients.

According to FINRA, Estevez recommended short-term steepeners. Steepeners are structured products with returns reliant on the spread between long- and short-term interest rates. Estevez made the recommendations as part of a short-term investment strategy, and many clients ended up buying steepeners at full price and then selling them for a loss. Overall, Estevez’s customers lost a total of about $24,000.

Unfortunately, unsuitable recommendations are a common occurrence. When you hire a broker to handle your money, they have a responsibility to get to know you and your investment strategy. If they don’t stick to your directions or take account of your financial situation and goals, they are breaking rules set by the securities industry.

Robert Estevez began working as a broker in 1998 for Prime Charter Ltd. in New York City. After a three-year stint, he moved on to Eastbrook Capital Group LLC also in NYC. Estevez’s most recent employer was Investors Capital Corp. out of Greenwich, CT.

Eastbrook Capital also ran into problems in recent years. In 2009, the firm was expelled from FINRA membership for failing to pay a fine of $85,000 resulting from a securities arbitration case.

In addition to the unsuitable recommendations allegations, Estevez is facing the denial of his securities registration application in New Hampshire due to another FINRA order. In 2013, he was found to have engaged in telemarketing several New Hampshire residents, which is a violation of FINRA Rule 32320, as well as NH law.

FINRA’s BrokerCheck reports have more information on Robert Estevez and Investors Capital Corp.

If you were given unsuitable investment recommendations, you could be eligible to recover lost money, and the Silver Law Group can give you the information you need to assess your situation. Scott Silver is the current chair of the American Trial Lawyers Association Securities and Financial Fraud Group, and our attorneys specialize in fighting for clients who have lost investments at the hands of brokers and financial advisors who have taken advantage of their positions.

We only work on contingency, which means we don’t get paid unless you reclaim money. For a free consultation from one of our securities arbitration lawyers, contact us.