Lydia B. Barraza, a stockbroker with Farmers Financial Solutions, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that she converted funds from a firm customer. Letter of Acceptance, Waiver and Consent, No. 2015045880301 (Oct. 20, 2015). On June 17, 2015, her firm filed a Uniform Termination Notice for Securities Industry Registration (Form U5), indicated Barraza had been terminated for misappropriation.
According to the AWC, from October 7, 2013 – May 12, 2015, Barraza had collected approximately $5,396.75 in cash for property and casualty insurance premiums from customers of Farmers Insurance Group, an entity which Barraza was also employed with via the capacity of insurance agent. The AWC noted that the premiums were the property of the firm, and were supposed to be deposited with the firm.
The AWC stated that Barraza converted approximately $4,836.75 of the insurance premiums, using the funds in order to pay her business and office expenses, rent and salaries, rather then depositing the funds with Farmers Insurance Group. FINRA Found Barraza to have violated Rule 2010, a rule which requires a Stockbroker to adhere to high standards of commercial honor and just and equitable principles of trade. This led to Barraza’s permanent bar.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.