Accused of helping himself to $61K from the credit line of a client, former El Paso, Texas financial advisor from Morgan Stanley Jesus Rodriguez has been barred by the Financial Industry Regulatory Authority (FINRA) effective 29th November 2021.
There are several customer disputes on his record. However, the FINRA sanctions were issued after his refusal to cooperate in the investigation by the self-regulatory organization. According to the letter of Acceptance, Waiver, and Consent (AWC) issued by FINRA, while Rodriguez agreed to the sanction, he neither denied nor admitted to the findings. It is also stated therein that he would not provide either information or documents for the investigation conducted by FINRA, other than the entry on the findings.
Haselkorn & Thibaut is currently investing Jesus Rodriquiez. Former clients are encouraged to call 800-856-3352 for a free consultation and review of their portfolio for fraud.
The Form U5 submitted by Morgan Stanley, where he was a registered representative at the time, says that he left voluntarily when allegations of the improper use of the customer’s credit line surfaced. This was in August 2021.
Record of Jesus Rodriguez (Morgan Stanley)
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Till he left Morgan Stanley in August 2021, Jesus Rodriguez had been working in the industry for 15 years.
He previously worked as a registered broker as well as an investment advisor at Citigroup Global Markets and Merrill Lynch, Pierce, Fenner & Smith.
Customer disputes
There are six customer disputes filed on his BrokerCheck record between July and September 2021 and all, in early December, were pending.
These include:
2021 July – $61K asked for in damages after the use of the customer’s credit line by Rodriguez, starting in 2017.
2021 August – $28K asked for by customer claiming that funds in her account have been misappropriated.
2021 August – Unspecified damages claimed for unauthorized withdrawals from the account.
2021 August – $266K sought in damages for, once again, unauthorized withdrawal of funds from the account.
2021 September – The claimant alleges unauthorized trades in mutual fund account that led to losses, as well as misappropriation of funds
2021 September – Customer seeks damages for fraudulently made withdrawals dating back to 2019.
Understanding misappropriation and unauthorized trading
The intentional use of the property (investment funds, as an example, since the context, is securities and investments here) of another person, for any purpose that is not approved by the owner of the property (the investor), is classified as misappropriation.
Brokers using client funds for their own requirements, though illegal, is not entirely uncommon. It is a common cause for FINRA arbitration cases.
Unauthorized trading is a more specific example of misappropriation. The broker might be trading in the customer’s account, but such trading that is not authorized is equivalent to misappropriation.
Legal help is available
Broker misconduct can adversely impact any investor. The experienced securities fraud lawyers at Haselkorn & Thibaut have supported thousands of investors recover losses arising out of the neglect and misconduct of their brokers and broker-dealers.
While we are speaking with customers of ex-Morgan Stanley FA Jesus Rodriguez, to determine whether any significant losses they experienced might be grounds for a securities arbitration claim, please reach out to us in case you believe you could have been a victim, to explore your legal options.
A free, no-obligation case assessment, can be scheduled by calling Haselkorn & Thibaut at 800-856-3352 throughout the US.
