Broker Juan Villalobos in Money Concepts Capital Corp Firm Has Customer Complaint

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Juan Villalobos (Villalobos), previously associated with Money Concepts Capital Corp, has at least 4 disclosable events. These events include 4 customer complaints, alleging that Villalobos 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 $480,000.00 on December 23, 2024.

The client alleges RR mismanaged his accounts and filed a claim for breach of fiduciary duty, breach of contract, and negligence.

FINRA BrokerCheck shows a pending customer complaint on September 16, 2024.

Claimants are alleging Breach of Contract, Breach of Fiduciary Duty, Fraud, and Negligence.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $152,000.00 on February 13, 2024.

Allegations – Claimants are alleging that their former registered representative (deceased) recommended unsuitable investments and breach of his fiduciary duty.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $300,000.00 on February 13, 2024.

Claimant is alleging the registered representative (deceased) recommended an unsuitable investment. Additional allegation of breach of contract, fiduciary duty, negligence, violation of Georgia Security Act and violations of federal securities laws.

Under the securities laws brokers are obligated to act in their clients’ best interests and provide only suitable recommendations for investments to the client. In addition, the SEC has promulgated ‘Regulation Best Interest (Reg BI)‘ which according to the SEC enhanced the broker-dealer standard of conduct beyond existing suitability obligations and requires broker-dealers to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities. Regulation Best Interest and the fiduciary standard for investment advisers are drawn from key fiduciary principles that include an obligation to act in the retail investor’s best interest and not to place their own interests ahead of the investor’s interest.

Brokers have an obligation to first obtain and evaluate sufficient information about a retail investor to form a reasonable basis to believe the account recommendations are in the retail investor’s best interest. Recommendations cannot be based on materially inaccurate or incomplete information. Material information always includes information concerning the investor as well as the cost of the recommendation. Types of costs that must be considered including account fees, commissions and transaction costs, tax considerations, as well as indirect costs.

In addition to obligation to understand the customer the broker must also investigate the product being sold. FINRA firms have an obligation to conduct a reasonable investigation of the issuer and the securities they recommend in offerings. A brokerage firm has a special relationship with a customer from the fact that in recommending the security, the broker represents to the customer that a reasonable investigation has been made. Accordingly, a brokerage firm may not rely blindly upon the issuer for information concerning a company in lieu of conducting its own reasonable investigation.

Additional, it should be required to mandate broker disclosures for investor’s protection. Brokers are required to disclose reportable events such as customer complaints, IRS tax liens, judgments, investigations, terminations, and even criminal matters on FINRA’s BrokerCheck reports for public viewing. FINRA has recognized that recent studies offer evidence showing that brokers with a past record of regulatory and customer complaint issues are more likely to have such issues in the future. FINRA’s Office of the Chief Economist (OCE) published a study showing the predictability of disciplinary and disclosure events based on past similar events. The OCE study showed that past disclosure events, including regulatory actions, customer arbitrations and litigations of brokers, have significant power to predict future investor harm. The data shows that where a member firm on-boards brokers with a significant history of misconduct there is a high likelihood that the broker will continue to engage in similar behavior.

Villalobos has been in the securities industry for more than 17 years. Villalobos has been registered as a Broker with Money Concepts Capital Corp since 2014.

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.

 

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