Anselmo Contreras Jr. of Angleton Texas a stockbroker formerly employed by Cambridge Investment Research has been barred from associating with any Financial industry Regulatory Authority (FINRA) member in any capacity based upon findings that Contreras converted a customer’s funds while he was associated with Cambridge Investment Research. Letter of Acceptance, Waiver and Consent No. 2018057254501 (Apr. 30, 2019).
According to the AWC, in March of 2016, during the time that Contreras was employed with Cambridge Investment Research Inc., Contreras advised a customer to enter into a real estate venture which consisted of buying and rehabilitating a foreclosed property. The AWC stated that in April of 2016, a total of $10,000.00 was provided to Contreras by the customer so that the customer could pursue the real estate venture.
Evidently, Contreras had other plans with the customer’s money as he placed the customer’s funds into a bank account Contreras owned. The AWC stated that unbeknownst to the customer, Contreras utilized the customer’s funds for Contreras’ own use instead of utilizing it for the real estate venture that the customer expected to be invested in. Evidently, this led the customer to file a complaint with the firm in regard to Contreras’ activities. FINRA found Contreras’ conversion of the customer’s funds to be violative of FINRA Rules 2010 and 2150(a).
The AWC stated that Contreras also borrowed a customer’s funds in contravention of the firm’s policies. Apparently, the procedures and policies of the firm disallowed stockbrokers from borrowing money belonging to a customer unless the firm provided approval beforehand.
Moreover, the AWC reported that two of the firm’s customers whose accounts Contreras was responsible for servicing had lent Contreras a total of $30,000.00 in April of 2016. Apparently, the funds were utilized by Contreras for his own benefit. Apparently, the firm was not asked by Contreras if he could borrow the customers’ funds, and the firm reportedly never authorized the arrangement. Consequently, FINRA found Contreras’ unauthorized customer loans to be violative of FINRA Rules 2010 and 3240.
FINRA Public Disclosure confirms that Contreras was terminated from Cambridge Investment Research Inc. on January 16, 2018 supported by accusations that Contreras failed to inform the firm about settling a customer complaint, and he engaged in a private securities transaction outside the firm’s auspices. Between January 16, 2018 and April 30, 2019, Contreras was registered with IFS Securities.
