Roy Aurelio Gaytan, of Moorpark, California, submitted a Letter of Acceptance Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for unauthorized trading.
In January 2012, Gaytan was registered as a representative of Transamerica Financial Advisors, Inc. until June 2017. During this period, Gaytan allegedly recommended that his customer establish a self-directed account with another firm. The customer then gave him de facto control over his account and he began using discretionary authority to execute securities transactions in the customer’s brokerage account at another firm. After sustaining losses in the account, the customer complained to Gaytan’s firm. Per FINRA, when questioned Mr. Gaytan admitted to executing discretionary trades in the account without providing disclosure to both firms resulting in his termination. Because of the foregoing conduct, Gaytan violated NASD Conduct Rule 3050(c) and FINRA Rule 2010. FINRA stated that Gaytan also violated rule 8210 by failing to respond to letters requesting information (Any person subject to FINRA’s jurisdiction must provide information if requested with respect to any matter involved in the investigation, complaint, examination, or proceeding.)
Without admitting or denying FINRA’s findings, Mr. Gaytan consented to the sanctions, received a fine of $15,000 and was suspended from association with any FINRA member in all capacities for eight months. The suspension is in effect from August 20, 2018, through April 19, 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 unauthorized trading, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Transamerica Financial Advisors, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your TransAmerica account due to unauthorized trading by your broker? Was Roy Aurelio Gaytan 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 Transamerica 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.