FINRA Bars Broker Daniel Vazquez – Accused Of Unsuitable Securities Sales

shutterstock_156562427-300x200Broker Daniel Vazquez (Vazquez) was recently sanctioned by The Financial Industry Regulatory Authority (FINRA) in an enforcement action that resulted in a permanent bar from the securities industry.  According to the FINRA AWC (Letter of Acceptance, Waiver, and Consent) FINRA found that Vazquez failed to request termination of his suspension within three months of the date of the suspension and was automatically barred from association with any FINRA member in any capacity.

The securities lawyers of Gana LLP are investigating the six customer complaints brought against Vazquez. In addition, Vazquez has one judgment or lien.  The customer complaints allege a number of securities law violations including that the broker made unsuitable investments, misrepresentations, an unauthorized trading among other claims.

The most recent claim was filed in December 2016 alleging Vazquez engaged in unsuitable trades causing $1,500,000 in damages.  The complaint is currently pending.  In August 2016 another investor filed a complaint alleging investment losses from trades made with Vazquez through two firms from 2013-2016 that were unsuitable.  The claim alleges $107,392.85 in damages and is currently pending.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client.  In order to make a suitable recommendation the broker must meet certain requirements.  First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

An examination of Vazquez’s employment history reveals that Vazquez moves from troubled firm to troubled firm.  The pattern of brokers moving in this way is sometimes called “cockroaching” within the industry.  See More Than 5,000 Stockbrokers From Expelled Firms Still Selling Securities, The Wall Street Journal, (Oct. 4, 2013).  In Vazquez’s 17 year career he has worked at least 12 different firms.

In addition, the number of customer complaints against Vazquez is high relative to his peers.  According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records.  Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints.  In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters.

Vazquez entered the securities industry in 1998.  From September 2009 until September 2011, Vazquez was associated with Foothill Securities, Inc.  From September 2011 until November 2013 Vazquez was registered with Investors Capital Corp.  From November 2013 until May 2016 Vazquez was associated with Cetera Advisors LLC out of the firm’s Irvine, California branch office location.

The investment lawyers at Gana LLP represent investors who have suffered investment losses due to allegations of wrongdoing. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.