Xavier Patino of Burr Ridge, Illinois submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which Patino was fined and suspended by the Financial Industry Regulatory Authority (FINRA) for allegedly making an unsuitable recommendation and making guarantees against loss in violation of FINRA Rules 2010 and 2150(b).
From October 2012 through May 2017, Patino was registered with JP Morgan Securities as a General Securities Representative. According to FINRA, sometime in 2014 and 2016, Patino allegedly made material misstatements to a customer guaranteeing the customer against a loss in connection with a variable annuity purchase. The FINRA findings stated Patino recommended that the customer purchase a $192,000 variable annuity contract. FINRA further found that Patino gave the customer documents to sign stating she would be able to take out some of her investment without penalty, and she would not lose any of her investments because they were guaranteed. FINRA stated that Patino knew the information was false but signed the documents anyways and by 2017 the variable annuity lost value.
Without admitting or denying FINRA’s findings, Patino was fined $10,000 and suspended from association with any FINRA member in all capacities for six months. The suspension was in effect from July 16, 2018, through January 15, 2019.
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 misrepresentations, unsuitable recommendations, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like JP Morgan Securities, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your JP Morgan Securities account due to misrepresentations or unsuitable recommendations by your broker? Was Xavier Patino 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 JP Morgan Securities 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 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 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.