Ex-El Paso Financial Advisor Allegedly Took Over $61K From Client Credit Line
On November 29, 2021, the Financial Industry Regulatory Authority (FINRA) barred Jesus Rodriguez. The former Texas broker was accused of taking over $61K from a client credit line for his own use. The sanction came after he refused to cooperate in the self-regulatory organization’s (SRO’s) investigation. Rodriguez is also named in several customer disputes.
Our broker misconduct attorneys are speaking with former customers of ex-Morgan Stanley financial advisor Jesus Rodriguez that have suffered investment losses. We can help you determine whether you have grounds for a FINRA arbitration claim.
Contact us at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) and ask for your free case assessment.
Rodriguez is Accused of Misappropriation & Unauthorized Trading
FINRA’s Letter of Acceptance, Waiver, and Consent (AWC) states that without denying or admitting to the findings, Rodriguez consented to the sanction. As well as the entry of findings, it also states that he would not provide documents and information in the SRO’s investigation into his resignation.
Morgan Stanley said in its Form U5 that Rodriquez voluntarily left the firm in August 2021 following the improper credit line use allegations. He worked in the industry for 15 years.
Between July 2021 and September 2021, six customer disputes naming Jesus Rodriguez were filed. According to BrokerCheck, as of early December 2021, all of the claims were still pending, including:
- September 2021: This customer is seeking damages from allegedly fraudulent withdrawals that were made in 2019.
- September 2021: This securities claim alleges misappropriation and unauthorized mutual fund trades that resulted in losses.
- August 2021: Claiming unauthorized fund withdrawals, this customer is requesting $266K in damages.
- August 2021: This claimant is also seeking damages for allegedly unauthorized withdrawals.
- August 2021: This customer, who contends that money was misappropriated from her account, is requesting $28K in damages.
- July 2021: The clients are requesting over $61K in damages after Rodriguez allegedly used their credit line beginning in 2017 for his own benefit.
Other firms where Jesus Rodriguez worked as both a registered broker and investment advisor include Citigroup Global Markets and Merrill Lynch, Pierce, Fenner & Smith.
What is Misappropriation & Unauthorized Trading?
Misappropriation refers to the intentional use of another person’s property (i.e. their investment funds) for purposes that were not approved by the owner (i.e. the investor). Many brokers have been found guilty of misappropriating their client’s funds for their own personal gain. This type of securities fraud is more common than you may think and has grounds for FINRA arbitration.
Similarly, unauthorized trading is another example of a broker using an investor’s funds without prior permission. If your broker traded in your account without your knowledge, you should seek legal advice from an experienced securities law firm.
Experienced Broker Misconduct Law Firm in Texas
Contact our Dallas broker negligence attorneys at (214) 613-5306 if you believe that you suffered investment losses when working with Morgan Stanley broker, Jesus Rodriguez. You can also reach our Houston securities fraud lawyers at (713) 227-2400. Throughout the United States, call SSEK Law Firm at (800) 259-9010.