In a recent case, allegations have been made against Gustavo Rodrigo, a broker currently associated with Sutter Securities Incorporated and Boustead Securities, LLC. The allegations, which are being taken incredibly seriously, concern the unauthorized execution of trades in a client’s account. Rodrigo has not admitted or denied these allegations but has consented to sanctions and the entry of findings.
The Seriousness of the Allegation and Case Information
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The allegations against Rodrigo are grave. He is accused of exercising discretion in a client’s account without obtaining written authorization from the client or his member firm. This is a direct violation of the rules set by the Financial Industry Regulatory Authority (FINRA), the organization responsible for overseeing brokers and their firms. Rodrigo is reported to have executed trades in the brokerage account of the firm customer without first consulting with the customer on the day of the transactions.
Rodrigo is currently associated with Sutter Securities Incorporated and Boustead Securities, LLC. Prior to this, he was associated with Westpark Capital, Inc. The allegations against him were made on 9/13/2023. As part of the sanctions, Rodrigo has been fined $2,500 and suspended from all capacities for 10 business days, from 10/2/2023 to 10/16/2023.
Explanation in Simple Terms and the FINRA Rule
In simple terms, Rodrigo is accused of making trades on behalf of a client without the client’s explicit permission. This is not only unethical but also against the rules set by FINRA. According to FINRA Rule 3260 (formerly Rule 2510), no member or registered representative may exercise any discretionary power in a customer’s account unless such customer has given prior written authorization to the member and the account has been accepted by the member.
The rule further states that the member or registered representative must discuss the transactions with the customer before executing them. Rodrigo’s alleged actions, therefore, represent a clear violation of this rule.
Why It Matters for Investors
Investors need to trust their brokers. When a broker like Rodrigo allegedly violates this trust, it undermines the integrity of the entire investment industry. If brokers are allowed to make trades without consulting their clients, it could lead to financial losses for the clients and potential legal consequences for the brokers.
Furthermore, this case highlights the importance of investors being vigilant and understanding the actions taken in their accounts. It is crucial for investors to regularly review their account statements and question any unauthorized or unexpected transactions.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Investors should be aware of certain red flags that could indicate financial advisor malpractice. These include unauthorized trading, excessive trading (also known as churning), unsuitable investments, and misrepresentation or omission of important information.
If investors suspect malpractice, they should immediately contact a trusted legal advisor. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating this case. With over 50 years of experience and an impressive 98% success rate, they offer free consultations to clients and a “No Recovery, No Fee” policy. Investors can reach them at their toll-free number, 1-800-856-3352.
Investors who have suffered losses due to broker malpractice can also seek recourse through FINRA Arbitration. This is a quicker and less formal alternative to litigation that can help investors recover their losses.
Haselkorn & Thibaut has a strong track record of successful financial recoveries for investors through FINRA Arbitration. They are dedicated to helping investors who have been wronged by their financial advisors and brokers.
