Felipe Arrieta Subject to Customer Complaints Alleging Unauthorized Trades

shutterstock_190371512-300x200The securities attorneys at Gana Weinstein LLP are investigating claims against Dakota Securities International, Inc. (Dakota Securities) broker Felipe Arrieta (Arrieta). According to BrokerCheck records, Arrieta has been subject to four customer complaints, one of which is still pending. The majority of these disputes concern unauthorized trading and misuse of margin.

In April 2017, a customer alleged that from 2015 to 2016, Arrieta engaged in a misuse of margin and committed negligence. The customer is requesting $210,000 in damages. This dispute is currently still pending.

In November 2011, a customer alleged that Arrieta was engaging in unauthorized trading without the knowledge or approval of the customer. The customer requested $15,000 for damages.

Trading on margin occurs when the investor borrows funds from the brokerage firm and agrees to keep a minimum account balance.  Margin trading increases investor risk and the volatility of the account.

Advisors are not allowed to engage in unauthorized trading. Unauthorized trading occurs when a broker sells securities without the prior consent from the investor. All brokers, who do not have discretionary authority to trade an account, are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b). Further, subsequent disclosure of the trades does not cure the violation. Unauthorized trading is a type of investment fraud because the SEC has found that no disclosure could be more important and material to an investor than to be made aware that trading is taking place. Unauthorized trading is often a gateway violation to other securities violations including churning, unsuitable investments, and excessive use of margin.

Arrieta has been in the securities industry for 14 years and has been registered with Dakota Securities since 2016. From August 2014 to August 2016, Arrieta was registered with Revere Securities LLC. From June 2014 to August 2014, Arrieta was registered with Westpark Capital, Inc. From May 2013 to January 2014, Arrieta was registered with Bolton Global Capital. From August 2010 to February 2012, Arrieta was registered with Capital Guardian, LLC which has been expelled by the Financial Industry Regulatory Authority (FINRA). From August 2009 to July 2010, Arrieta was registered with Jesup & Lamont Securities Corp, which has been expelled by FINRA.

Investors who have suffered losses may be able recover their losses through securities arbitration. The investment attorneys at Gana Weinstein LLP are experienced in representing investors in cases of selling away and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.