Carlos Ricardo Fuenmayor of Key Biscayne, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly acting as a General Securities Principal and a General Securities Representative without being registered in either capacity, in violation of NASD Rules 1021 and 1031, and FINRA Rule 2010.
From September 2013 through October 2016, Carlos Ricardo Fuenmayor was associated with Dakota Securities International, Inc. (Dakota) as Director and 20% owner. According to FINRA, Fuenmayor securities licenses had lapsed in September 2013 when he purchased 20% ownership interest in Dakota. The findings stated that Fuenmayor did not become registered as a General Securities Principal or a General Securities Representative until 2015 but was actively engaged in Dakota’s securities business and in the management of its securities business. In addition to the FINRA findings, Fuenmayor was primarily responsible for the hiring and management of personnel at Dakota, advised registered representatives about different types of trading strategies and ordered the registered representatives to execute trades.
NASD Membership and Registration Rule 1031(a) provides that “all persons engaged or to be engaged in the investment banking or securities business of a member who are to function as representatives shall be registered as such with NASD in the category of registration appropriate to the function to be performed as specified in Rule 1032. Before their registration can become effective, they shall pass a Qualification Examination for Representatives appropriate to the category of registration as specified by the Board of Governors.” Rule 1031(b) defines a representative as “persons associated with a member … who are engaged in the investment banking or securities business for the member including the functions of supervision, solicitation or conduct of business in securities…” Finally, Rule 1031(c) requires that persons whose registrations have lapsed for two years or more must retake the applicable series examination in order to renew their registrations effectively.
Without admitting or denying FINRA’s findings, Carlos Ricardo Fuenmayor was assessed a deferred fine of $20,000 and suspended from association with any FINRA member in all capacities for 15 months. The suspension is in effect from July 17, 2019, through September 16, 2020.
Stockbrokers have been known to engage in many practices that may violate 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 supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from misconduct by their broker can file claims to recover damages against broker-dealers, like Dakota Securities International, Inc., which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Dakota Securities International, Inc. account due to misconduct by your broker? Was Carlos Ricardo Fuenmayor your stockbroker? 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 Dakota Securities International, Inc. stockbrokers who may have engaged in broker 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 40 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.