James Luis Fonseca of Rothschild Lieberman LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he converted a customer’s funds and then failed to cooperate with FINRA in an investigation into his activities. Letter of Acceptance Waiver and Consent No. 2015048041101 (Nov. 28, 2016).
According to the AWC, in August of 2015, Fonseca procured authorization from Rothschild Lieberman to train customers on day trading. Subsequently, Fonseca solicited customer AR to hand over $25,000.00 for his day trading trainings. Apparently, AR’s funds were ultimately commingled with Fonseca’s spouse’s assets and later converted. FINRA Fonseca’s conduct violative of FINRA Rules 2010 and 2150.
The AWC stated that FINRA then launched an investigation into Fonseca’s activities, where on September 12, 2016, Fonseca was called upon to provide recorded testimony before FINRA personnel. The AWC stated that despite Fonseca having been provided an extension from FINRA to cooperate, he ultimately failed to testify by a October 19, 2016 deadline. Rather, Fonseca reportedly contacted FINRA personnel that day to inform FINRA that its request had been received by him but that he would at no point be cooperating in FINRA’s investigation. FINRA found Fonseca’s failure to furnish documentation and testify before FINRA personnel to be violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that Fonseca was subject of a customer initiated investment related arbitration claim where the customer was awarded $3,500.00 in compensatory damages based upon Fonseca having been found liable on the customer’s claim of unauthorized trading of securities. FINRA Arbitration No. 09-03921 (May 4, 2010).
Fonseca was terminated from Rothschild Lieberman on November 23, 2015 supported by allegations that Fonseca improperly handled a customer’s funds. Since April 15, 1999, Fonseca has been associated with eighteen different broker dealers, four of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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