Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Robert Estevez (Estevez). According to BrokerCheck records there are at least 9 disclosures on Estevez’s record including customer complaints, multiple regulatory actions, and one judgments or liens among other claims. Some of the regulatory actions expressed concerns over Estevez’s ability to manage his own personal finances. Substantial financial disputes on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services. A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances. The most recent regulatory action against Estevez was filed by the State of Michigan which is currently pending and remains unresolved at this time.
In September 2016,FINRA alleged that Mr. Estevez recommended unsuitable short-term steepener transactions to his customers, which are highly complex investment products that profits from the difference between short and long term rates. FINRA claims that the market for steepeners are known to have an illiquid nature, making them unsuitable for most customers. This investment strategy resulted in approximately $24,000 in customer loss. Estevez was issued a penalty of $20,000 and suffered a two-month suspension.
In January 2013 the State of New Hampshire issued a Cease and Desist Order to deny Estevez’s securities agent registration in that state.