Securities Lawyers Blog
Previously financial advisor Elba Nogueras (Nogueras), previously employed by brokerage firm First Southern, LLC has been subject to at least 2 disclosable events. These events include one customer complaint, one regulatory event. According to a BrokerCheck reports most of the recent customer complaints concern either corporate debt securities or alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.
FINRA BrokerCheck shows a final customer complaint on September 18, 2023.
Without admitting or denying the findings, Nogueras consented to the sanctions and to the entry of findings that she willfully violated the Care Obligation of Rule 15l-1 under the Securities Exchange Act of 1934 (Reg BI) by recommending that her customer, a 52-year-old, invest in an illiquid, non-traded real estate investment trust (REIT) without having a reasonable basis to believe the investment was in the customer’s best interest. The findings stated that the prospectus cautioned that investments in the non-traded REIT involved a high degree of risk and could have resulted in a complete loss of principal. Based upon Nogueras’ recommendation, her customer invested $81,000, which represented 81 percent of the customer’s liquid net worth, in the non-traded REIT, resulting in Nogueras earning a commission of $5,670. Given the risk and illiquidity of investments in the non-traded REIT, Nogueras lacked a reasonable basis to believe her recommendation was in the best interest of the customer, who had a moderate risk tolerance and limited investment experience.