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HSBC Securities Broker Permanently Barred by FINRA for Converting Blind Client’s Funds

Jaime Rodriguez, a former registered representative with HSBC Securities (USA) Inc., has been permanently barred by the Financial Industry Regulatory Authority (FINRA) amid findings that he converted funds of his elderly, legally blind customer.

According to FINRA, Jaime R. Rodriguez, of Yonkers, New York, converted approximately $200,000 from his elderly, legally blind customer, using the money to purchase two apartments in his own name, unbeknownst to his customer.  In the first apartment purchase, FINRA found that Mr. Rodriguez converted approximately $70,000 of his customer’s funds.  In the second apartment purchase, Mr. Rodriguez allegedly converted $130,000 of his customer’s funds.  In both purchases, the customer had no idea that Mr. Rodriguez was the sole owner of the apartments due to the fact that the elderly customer could not see or read the documents.  In the case of the second apartment, FINRA found that Mr. Rodriguez was renting out the apartment and collecting and keeping the rent.  Without admitting or denying FINRA’s findings, Mr. Rodriguez was permanently barred from association with any FINRA member in any capacity.

Stockbrokers, registered representatives, and other financial industry professionals have been known to engage in many types of fraudulent and unlawful behavior, such as conversion of funds, which violate industry rules and procedures.  In order to protect investors from such misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system.  The implementation of the rules requires supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures.  If brokerage firms and their supervisors do not establish and implement these protective measures, they may be liable to account holders for losses flowing from the misconduct.  As a result, investors who have suffered losses stemming from stockbroker misconduct can bring forth claims to recover damages against broker-dealers, like HSBC Securities, which have a duty to supervise its employees in order to prevent stockbroker misconduct.

Have you suffered losses in your HSBC Securities investment account due to your stockbroker’s 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 HSBC Securities financial professionals for conversion of funds and/or other kinds of stockbroker misconduct.

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.  The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally!  Please post a comment, call (800) 732-2889, send Mr. Pearce an email at pearce@rwpearce.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.