Carmelo Arce Alvarez of Hato Hey Puerto Rico a stockbroker currently registered with Nationwide Planning Associates Inc. has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Alvarez engaged in unauthorized trades in the accounts of Nationwide Planning Associates customers. Letter of Acceptance Waiver and Consent No. 2018059949301 (Nov. 26, 2019).
According to the AWC, between February of 2017 and February of 2018, during the period in which Alvarez was associated with Nationwide Planning Associates, a total of seven hundred thirty-nine trades had been effected by the stockbroker through her use of discretion in the accounts of sixteen customers.
The AWC stated that during this period, Alvarez was prohibited under FINRA rules from engaging in discretionary trading unless written authorization was furnished to the securities broker dealer by the customers and unless written authorization had been provided to her by the securities broker dealer.
None of the sixteen customers whose accounts Alvarez traded in had furnished any written authorization to her to warrant her trading. In addition, none of those accounts had been authorized by Nationwide Planning Associates. FINRA determined that Alvarez’s lack of written authorization precluded her from properly engaging in discretionary trading. Her conduct in this regard was violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Alvarez has been employed by Nationwide Planning Associates since March 3, 2014.
