Mauricio Jaramillo, a stockbroker formerly registered with Ultralat Capital Markets, Inc., submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $7,500 and suspended for four months. Without admitting or denying FINRA’s findings, Mauricio Jaramillo, of Bogota, Colombia, consented to the entry of findings that he recommended unsuitable and overconcentrated short-term trading in bonds in the accounts of three customers.
Ultralat Capital Markets (Ultralat) provides retail brokerage services for customers based in Latin America referred by Ultrabursatiles S.A. Comisionista de Bolsa. While registered with Ultralat as a foreign associate, Mr. Jaramillo allegedly engaged in short-term bond trading which included bond swap transactions. According to FINRA, due to Mr. Jaramillo’s recommendations, the customers’ accounts were almost totally (98%) concentrated in bonds denominated in Brazilian Reais. Further, FINRA alleged the customers had significant margin balances in their accounts as well. Mr. Jaramillo allegedly had no basis for such short-term, unsuitable, and overconcentrated bond recommendations, especially in light of the fact that two of the three customers involved had conservative investment objectives. Consequently, Mr. Jaramillo was assessed a deferred fine of $7,500 and suspended for four months. The suspension is in effect from January 17, 2017 through May 16, 2017.
Stockbrokers have been known to engage in many practices that may be a violation of industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered losses stemming from unsuitable recommendations or an overconcentrated investment account can bring forth claims to recover damages against broker-dealers, like Ultralat Capital Markets, which should consistently oversee its brokers’ activities in order to prevent the above-described prohibited conduct.
Have you suffered losses in your Ultralat Capital Markets account due to your stockbroker’s unsuitable Brazilian bond recommendations or transactions? Is your account overconcentrated in Brazilian bonds? 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 Ultralat Capital Markets stockbrokers who may have engaged in unsuitable trading strategies 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 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. In fact, Mr. Pearce is currently representing numerous clients with cases involving unsuitable, misrepresented investments overconcentrated in Puerto Rico bonds. 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.