Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Carlos Cortez (Cortez), previously associated with World Equity Group, INC., has at least 19 disclosable events. These events include 19 customer complaints, alleging that Cortez recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $11,500.00 on September 06, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $10,000.00 on August 23, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $54,000.00 on June 29, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $50,000.00 on June 29, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $110,000.00 on June 20, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,000.00 on June 13, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $60,000.00 on June 01, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $30,000.00 on May 18, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on May 11, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $175,000.00 on April 18, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $62,000.00 on April 12, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on April 08, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $10,000.00 on March 24, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $80,000.00 on March 23, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $20,000.00 on March 21, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $20,000.00 on February 04, 2022.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $40,000.00 on December 27, 2021.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $40,000.00 on December 17, 2021.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $20,000.00 on December 02, 2021.
Client invested in a cryptocurrency fund that was recommended by the Advisor. The fund turned out to be a fraudulent investment.
In the financial industry advisors must meet the requirements of the SEC’s Regulation Best Interest (Reg BI) in providing investment advice and services. Reg BI established a ‘best interest’ standard for brokerage firms and registered representatives. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. This standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or accounts.
Next, the broker must understand the investor’s investment background and profile. A customer’s profile includes information that describes the investor’s financial situation and needs. Information here will include their outside securities accounts and investments; relevant assets and debts; tax bracket; age; liquidity needs; risk tolerance; investment time horizon; experience with investing; investment objectives; and any other relevant information that the investor may choose to disclose pertinent to their situation. Reg BI was meant to enhance the duties that registered representatives have to their clients by applying fiduciary principles to transactions and investment strategies by prohibiting brokers from placing their own financial interests ahead of the best interests of their client – the investor. There are different sub-parts of the Reg BI rule that financial professionals must comply with when providing advice. Among those is the duty of care obligation that mandates associated persons to evaluate investment options, review and be knowledgeable the risks and rewards of the investment or service, compare alternative investment products, and ensure that the overall investment strategy aligns with the client’s goals and is in their best interests.
Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest. Brokerage firms and advisors must also understand the features and limitations of various account types as part of meeting Reg BI’s care obligations. Firms typically offer a variety of account options and services with different trading costs, services, such as account and activity monitoring. An advisor’s recommendation as to what type of securities account to open can alter the customers’ overall costs and investment returns. The advisor must determine that the client can benefit from the type of account being recommended to be opened and in the investor’s best interest taking into account the costs, benefits, and needs of the client.
Cortez has been in the securities industry for more than 11 years. Cortez has been registered as a Broker with World Equity Group, INC. since 2019.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.