Frank John Tarazon, a former broker at Des Moines, Iowa based ING Financial Partners, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the described sanctions and to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he borrowed a total of $368,692 from an elderly customer contrary to his member firm's policies and procedures, which prohibited registered representatives from borrowing money from customers, except from immediate family members. The findings stated that Mr. Tarazon never sought permission to borrow funds from the customer, and the firm was unaware of the customer's loans to Mr. Tarazon. The findings also stated that Mr. Tarazon maintained or had a financial interest in brokerage accounts held outside his member firm without providing the firm with written notice of these accounts or receiving the firm's prior approval to open or hold an interest in the accounts. The findings further included that Mr. Tarazon was designated as a successor trustee to the customer's trust and as a beneficiary to that trust. Mr. Tarazon's firm's policies and procedures prohibited registered representatives from being named as a beneficiary on an account or from acting in the capacity of a guardianship, conservator, trustee, power of attorney, or any similar type of relationship on behalf of any unrelated person without first obtaining the firm's written approval. This prohibition included acting as a beneficiary of a trust or estate. FINRA found that during his firm's annual inspections, Mr. Tarazon falsely stated to his supervisor that he did not have any undisclosed outside brokerage accounts. Mr. Tarazon also falsely stated on annual business questionnaires that he had not been named as a trustee or beneficiary of a customer's trust.
Mr. Tarazon, of Oxnard, California, was fined $20,000 and suspended from association with any FINRA member in any capacity for six months. The fine must be paid either immediately upon Mr. Tarazon's re-association with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. The suspension is in effect from April 15, 2013 through October 14, 2013.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to their broker's violation of firm policies and procedures can bring forth claims to recover losses against broker-dealers such as ING Financial Partners. Have you suffered losses in your ING Financial Partners, Inc. account due to broker misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Mr. Tarazon and ING Financial Partners, Inc. whose stockbrokers may have engaged in misconduct and caused investors losses.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.