Anthony Diaz of Scotrun Pennsylvania a stockbroker formerly registered with IBN Financial Services Inc. is the subject of a customer initiated investment related arbitration claim where the customer sought unspecified damages founded on allegations that the customer had been placed into unsuitable investments including (1) real estate security (2) promissory note (3) oil and gas and (4) direct investments including direct participation program interests or limited partnership interests during the time that Diaz was associated with IBN financial Services Inc. Financial industry Regulatory Authority (FINRA) Arbitration No. 19-00277 (Jan. 30, 2019).
FINRA Public Disclosure reveals that since Diaz has been barred by FINRA from associating with any FINRA member, he is referenced in sixty-two customer initiated investment related disputes pertaining to accusations of Diaz’s violative conduct while he was associated with IBN Financial Services Inc. and First Allied Securities Inc. Specifically, Diaz is referenced in a customer initiated investment related arbitration claim in which customers were collectively awarded $1,033,166.00 in compensatory damages and $2,892,864.00 in punitive damages according to Diaz having been found liable on the customer’s claims of failure to supervise; violation of state securities laws and FINRA Rules; omissions and misrepresentations; suitability; and fraud concerning the securities transactions placed in customers’ investments accounts. FINRA Arbitration No. 16-01293 (Jan. 19, 2018). Diaz was suspended by FINRA on April 30, 2018 based upon allegations that Diaz failed to comply with this FINRA Arbitration Award.
Another customer initiated investment related complaint regarding Diaz’s activities was settled on March 1, 2017 for $86,450.00 in damages supported by accusations that Diaz, inter alia: caused the customer’s signature to be forged on investment documentation; made erroneous guarantees to the customer concerning the returns to be expected on investments; falsified information concerning the customer’s income and net worth; misrepresented information concerning the interest payments on investments selected for the customer’s account; and placed the customer in unsuitable investments including ICON Fund 11, ICON Fund 12, and AE industrial Partners, LP.
Subsequently, on March 2, 2017, a customer initiated investment related complaint involving Diaz’s conduct was resolved for $166,886.00 in damages founded on allegations that false statements had been made by Diaz in regard to the customer’s real estate security and direct investment holdings; documents had been forged by Diaz to effect securities transactions; bad advice was provided by Diaz given the customer’s liquidity needs; and misrepresentations had been made by Diaz about the interest payments on investments sold to the customer.
Further, on May 4, 2018, a customer filed an investment related arbitration claim concerning Diaz’s activities in which the customer requested between $500,000.00 and $1,000,000.00 in damages based upon accusations of the customer being poorly advised by Diaz concerning real estate security, oil and gas, and equipment leasing products sold to the customer while Diaz was associated with Sandlapper Securities and IBN Financial Services Inc. Diaz is also subject of a customer initiated investment related arbitration claim in which the customer sought $70,000.00 in damages supported by allegations that the customer was placed into fraudulent oil and gas investments. FINRA Arbitration No. 18-03769 (Nov. 9, 2018).
Then, a customer initiated investment related arbitration claim regarding Diaz’s activities was settled for $37,500.00 in damages founded on accusations that Diaz negligently serviced the customer’s investment account; Diaz breached his fiduciary obligations to the customer; and IBN financial Services Inc. failed to supervise Diaz’s alternative investment sales. FINRA Arbitration No. 17-02995 (Jan. 25, 2019).
Diaz has been barred by FINRA from associating with any FINRA member according to an Order Accepting Offer of Settlement containing findings that Diaz, inter alia: gave bad advice to customers about variable annuity exchanges; lied about the guarantees pertaining to real estate investment trust and direct investment products; fabricated information about customers to make them eligible for investments that they were not actually eligible for; forged customer signatures on account documentation; traded without permission from customers; and lied to customers about the reason he was terminated from four securities broker dealers, causing customers to believe that he left those securities broker dealers on his own volition when Diaz had really been terminated because of customers’ complaints. Department of Enforcement v. Anthony Diaz Disciplinary Proceeding No. 2011030254902 (May 27, 2015). FINRA found Diaz’s conduct violative of, among other things, Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and FINRA Rules 2020 and 2010.
Diaz’s registration with IBN Financial Services Inc. has been terminated as of April 23, 2015.
