Securities Arbitration Investment Fraud Lawyers » Investment and Regulatory News » FINRA Sanctions Western International Stockbroker For Undisclosed Loans From Customers

Sign of the Financial Industry Regulatory Authority

Efrain Balderrama Trujillo of Los Angeles, California, a stockbroker registered with Western International Securities Inc., has been fined $5,000.00 and suspended for eight months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Trujillo borrowed from a customer. Letter of Acceptance, Waiver, and Consent No. 2021072406801 (October 14, 2022).

According to the AWC, between 2018 and 2021, during the time that he was associated with Western International Securities Inc., Trujillo borrowed a collective $335,000.00 from nine customers without getting prior written approval from the securities broker dealer. Therefore, Trujillo violated FINRA Rules 2010 and 3240.

This is not the first time that Trujillo has been the subject of a regulatory action concerning Trujillo’s conduct in the securities industry. FINRA Public Disclosure shows that Trujillo has been barred from associating with any FINRA member in any principal capacity because Trujillo failed to supervise certain registered representatives. Letter of Acceptance, Waiver, and Consent No. 2017054755208 (November 17, 2020).

According to the AWC, between December 2013 and July 2017, during the time that he was associated with Financial West Group, Trujillo failed to supervise four registered representatives. Those representatives made unsuitable investment recommendations and engaged in excessive trading in the accounts of five customers. Trujillo did not investigate red flags and take appropriate steps to ensure the representatives complied with FINRA Rules. FINRA states that Trujillo was notified of red flags by a compliance principal in March 2016, but Trujillo failed to reasonably investigate the matter. Therefore, he violated FINRA Rules 2010, 3110(a), and 2360(b).

Trujillo was also referenced in a customer initiated investment related complaint that was settled on June 24, 2016, for $45,474.00 in damages based upon allegations that Trujillo made unsuitable recommendations of over-the-counter equities during the time that Trujillo was associated with Financial West Group.

Trujillo was associated with Financial West Group in Los Angeles, CA, from June of 2012 to August of 2017, and was associated with Western International Securities Inc. in Los Angeles, CA, from August of 2017 to October of 2021. On October 26, 2021, Western International Securities Inc. discharged Trujillo based upon allegations of the customer loan.