NAC Decision: Miami Broker Made Material Misrepresentations, Recommended Unsuitable Investments
On October 7th, 2021, the National Adjudicatory Council (NAC) rendered a decision in the case of Department of Enforcement v. Jorge A. Reyes (Complaint No. 2016051493704). The NAC upheld a previous decision, finding that former CP Capital Securities broker Jorge A. Reyes (CRD#: 4256834) violated a number of different securities regulations. Here, our Miami unsuitable investment lawyer discusses the decision from the National Adjudicatory Council.
Background: Miami Broker Jorge A. Reyes
Jorge A. Reyes was a registered securities broker from September 2000 through January 2017. From March of 2010 through early 2017, Mr, Reyes was associated with CP Capital Securities in Miami, Florida. Previously, this broker had also served as a representative for other firms in South Florida, including RBC Capital Markets, Carlin Equities LLC, and The Partners Financial Group Inc.
In 2018, FINRA initiated an investigation into the professional conduct of former CP Capital Securities broker Jorge A. Reyes. Following that investigation, the agency recommended that Mr. Reyes was permanently barred from associating with any FINRA firm in any capacity. Mr. Reyes challenged the initial findings—taking the case all the way to the National Adjudicatory Council.
NAC Findings: Material Misrepresentations, Material Omissions, Unsuitable Investments
In 2018, former CP Capital Securities financial advisor Jorge A. Reyes was named in a complaint alleging that he made fraudulent misrepresentations and material omissions in relation to the sale of unregistered securities. The unregistered securities in question were a series of promissory notes issued through private placement investment entities, including:
- CP Income;
- CP Venture I; and
- CP Venture II.
Notably, all of the private placements were offered through the brokerage firm CP Capital Securities. After a comprehensive review, the NAC determined that Jorge A. Reyes was directly involved in these securities offerings. Investigators contend that private placement investments were marketed towards investors as being safe and secure. In total, at least 18 customers of the brokerage firm invested their money in these unregistered securities. The entire investment was lost. Collectively, the 18 investors sustained $4,219,000 in damages.
Financial Advisor Sanctions: Former CP Capital Securities Broker Jorge A. Reyes
The NAC has ruled in favor of the FINRA Department of Enforcement. Among other things, the NAC determined that Mr. Reyes made material misrepresentations, omitted material facts, made unsuitable investment recommendations to investors, and violated federal securities laws. In addition, the NAC also assessed that Mr. Reyes improperly converted funds in violation of FINRA rules. Based on the findings, the NAC has barred the former CP Capital Securities financial advisor from being associated with any FINRA firm in any capacity. Mr. Reyes has also been ordered to pay costs and fees as deemed appropriate.
Call Our Miami, FL Broker Fraud Attorneys for Legal Advice
At Carlson & Associates, P.A., our Florida securities fraud lawyers fight hard to help our clients get justice. If you sustained economic losses due to a broker’s misrepresentations or unsuitable investment recommendations, we can help. Call us now for a completely private review of your financial advisor fraud claim. From our main office in Miami, we advocate for the legal rights of investors throughout Southeastern Florida.
Resources:
brokercheck.finra.org/individual/summary/4256834
finra.org/sites/default/files/fda_documents/2016051493704%20Jorge%20A.%20Reyes%20CRD%204256834%20NAC%20Decision%20sl.pdf
