Did Israel Soto Cause You Investment Losses?
Israel Soto of Canutillo, Texas submitted a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority in which he was fined $7,500 and suspended from association with any FINRA member in all capacities for a period of three months. The sanctions were based on findings that he allegedly engaged in an outside business activity and failed to notify his firm of an outside business account he opened in violation of FINRA Rules 3270, 3210 and 2010. The suspension was in effect from March 1, 2021, through May 31, 2021.
From April 2018 through March 2020, Israel Soto was registered with Morgan Stanley Smith Barney, LLC as a General Securities Representative. According to FINRA’s findings, Soto formed a limited liability company and served as the registered agent and sole managing member while registered with Morgan Stanley. The findings state that Soto allegedly failed to seek approval from Morgan Stanley before forming the company and falsely attested that he had not engaged in undisclosed outside business activities on their annual compliance questionnaires. In addition, the findings further allege that Soto also opened and controlled a brokerage account at another member firm, without seeking approval from Morgan Stanley and falsely attesting to the outside business account on their annual compliance questionnaires. Although Israel Soto is not currently registered or associated with a FINRA member, he remains subject to FINRA’s jurisdiction.
FINRA Rule 3270 states that “no registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated by, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member.” FINRA Rule 3210 requires a person associated with a member firm, prior to opening a brokerage account with another member firm, to notify both firms of his or her association with the other member firm. These requirements apply to accounts in which the associated person has a beneficial interest. A violation of FINRA Rule 3210 also violates FINRA Rule 2010.
Do You Need a Texas FINRA Securities Arbitration Attorney?
Are you a Canutillo, Texas investor who has suffered significant losses in your stock brokerage and investment accounts? Did your Texas stockbroker or investment advisor misrepresent facts, fail to disclose facts making the statements made false and misleading, recommend unsuitable investments or strategies, excessively trade or churn, mismanage your investment account or engage in other kinds of stockbroker misconduct? If so, you need representation by an experienced, highly-rated and nationally recognized FINRA securities arbitration attorney—a lawyer who knows FINRA rules and procedures inside and out and how to handle these FINRA arbitration cases as well as other complex legal issues.
Free Initial Consultation With Experienced FINRA Securities Arbitration Attorneys Serving Canutillo, Texas Residents In FINRA Arbitration Proceedings
At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout Texas, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities and investment law disputes serving Texas citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.