Barred Morgan Stanley Broker Jesus Rodriguez Gets 12-Year Sentence For Investment Broker Fraud
Jesus “Chuy” Rodriguez de la Cruz (“Rodriguez”), an ex-Morgan Stanley stockbroker in Texas, was sentenced to 12 years in prison for defrauding investors in a multimillion-dollar investment fraud. His CRD on BrokerCheck lists him as Jesus Rodriguez.
Rodriguez was barred by the Financial Industry Regulatory Authority (“FINRA”) in 2021. The U.S. Securities and Exchange Commission (“SEC”) filed a complaint against Rodriguez last year accusing him of misappropriating over $4.6 million from the accounts of at least 10 investors at Morgan Stanley where he was a registered representative from 2009 to 2021.
Customers Of Former El Paso, TX Financial Advisor Have Received More than $4.6 Million In Settlements Over Their Losses
While Morgan Stanley reportedly lost more than $5.5 million because of Rodriguez’s investment scam and contends that its former financial advisor also defrauded the firm, the broker-dealer has been forced to pay out millions to Rodriguez’s victims.
According to the FBI, the ex-Texas broker “exploited his position of trust as a financial advisor” and fooled both clients and his employer. Morgan Stanley reported the allegations of broker fraud involving Rodriguez to the FBI once his theft was uncovered.
Why Do Investors Sue Brokerage Firms for Investment Broker Fraud?
Broker-dealers have a duty to properly supervise their registered representatives and their customers’ accounts to ensure that no kind of financial advisor misconduct, including misappropriation, is being committed.
When a failure to supervise or identify red flags leads to investors becoming the victims of investment scams, customers may be able to sue the brokerage firm to recoup their losses even if the latter had no idea anything wrongful was taking place.
Financial advisors who exploit their positions of trust as fiduciaries to defraud their customers are not only bad brokers, but they are criminals.
Working With Trusted Broker Fraud Attorneys
Criminal charges can be brought, as can regulatory ones, against a financial advisor for wrongdoing. However, these cases typically do not result in making an investor who was harmed financially whole again.
If you were an investor who suffered losses because of stockbroker fraud, it is important to explore your legal options to determine whether they have grounds for suing the financial advisor and/or their firm.
Shepherd Smith Edwards and Kantas Investment Broker Fraud Attorneys have been representing investors against brokerage firms and investment advisers for decades. We have helped thousands of clients to collectively recoup many millions of dollars in settlements and awards against broker-dealers, including Morgan Stanley.
Contact us online or call (800) 259-9010 to schedule your free with one of our Investment Broker Fraud Attorneys, initial case consultation.