Ariel A. Rivero of Miami, Florida, a stockbroker registered with Jefferies LLC, has been fined $15,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Rivero borrowed money from a customer without firm approval and attempted to settle a customer complaint without firm knowledge. Letter of Acceptance, Waiver, and Consent No. 2021072830601 (May 13, 2024).
According to the findings, from November 2020 to January 2022, Rivero used WhatsApp to communicate with six customers about securities-related business. Jefferies LLC did not approve WhatsApp for business communications, so the firm did not preserve these messages as required by law. This caused Jefferies to maintain incomplete records, violating Securities Exchange Act of 1934 Section 17(a) and Rule 17a-4(b)(4). Therefore, Rivero violated FINRA Rules 2010 and 4511.
FINRA also stated that in December 2020, Rivero borrowed $500,000.00 from a customer without providing prior notice or obtaining written authorization from Jefferies. He violated FINRA Rules 3240 and 2010.
In April 2021, Rivero attempted to settle a customer complaint without notifying Jefferies. The customer complained about losses in non-traditional exchange-traded funds. Rivero offered to reimburse the customer over $300,000.00 in monthly installments via WhatsApp. Rivero did not disclose the complaint or his settlement attempt to Jefferies. The customer eventually filed an arbitration claim against Rivero and Jefferies. Therefore, Rivero violated FINRA Rule 2010.
FINRA Public Disclosure shows that Rivero was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $260,000.00 in damages based upon allegations that Rivero breached his fiduciary duties by placing the customer into unsuitable and risky investments. The claim also alleged that Rivero used customer funds without authorization during the time that Rivero was associated with Jefferies LLC. FINRA Arbitration No. 21-02298 (December 2, 2021). According to the claim, Jefferies failed to supervise certain representatives in connection with the sale of ETFs and options.
Rivero is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $150,000.00 in damages based upon allegations that Rivero breached his fiduciary duties by recommending LMS Investments LLC and Octagon, S.A. when Rivero was associated with Jefferies LLC. FINRA Arbitration 22-00687 (July 7, 2023). The claim also alleged misrepresentations of risks.
Rivero has been associated with Insigneo Securities LLC in Coral Gables, Florida since December 16, 2021. He has been associated with Insigneo Advisory Services LLC in Coral Gables, Florida since December 22, 2021.
