Neither a borrower nor a lender be.
Ciro Gilbert Cavazos, of Chico, California, a stockbroker with Edward Jones, was fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member firm any capacity after consenting to findings that he engaged in the unauthorized borrowing of customer funds. Letter of Acceptance, Waiver and Consent, No. 2016049080401 (Aug 4, 2016).
According to the AWC, in May 2011, while Cavazos was associated with Edward Jones, he had borrowed $10,000.00 from one of the firm’s customers. Apparently, the loan between the customer and Cavazos was not documented, and did not contain a date in which the loan obligation matured or what repayment terms were. The AWC stated that the customer’s investment account was switched to Raymond James upon Cavazos’ becoming employed there.
Apparently, Edward Jones and Raymond James both disallowed individuals such as Cavazos from borrowing funds from customers, absent certain limited circumstances. FINRA found that Cavazos failed to meet any of the circumstances where borrowing was allowed, and found him to be in violation of FINRA Rules 3240 and 2010 as a result. Prior to FINRA’s disciplinary action against Cavazos, he was terminated by Raymond James Financial Services on March 2, 2016, for borrowing funds from a client without disclosing such to the firm.
Public disclosure records reveal that Cavazos has been subject to four disclosure incidents. On December 18, 2012, Cavazos settled a customer dispute for $12,000.00 after the customer alleged that Cavazos had withdrawn funds from the customer’s individual retirement account despite not having permission, and where such withdrawal resulted in the customer bearing a tax liability of $35,000.00.
On May 27, 2016, Cavazos became subject to another customer dispute currently pending, in which the customer alleged that Cavazos committed fraud, breach of misrepresentation, and elder financial abuse in connection with a variable annuity transaction.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
