Hector Ramos of New York New York a stockbroker formerly associated with Bishop Rosen Co. Inc. has been suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that gave bad advice to a disabled customer. Letter of Acceptance Waiver and Consent No. 2018059983001 (June 2, 2020).
According to the AWC, in 2014, Ramos began servicing the account of customer AV, who was disabled and unemployed. AV apparently had little investment experience and was depending on a fixed income at the time that Ramos began making investment recommendations to her. FINRA stated that the customer’s investable assets came by way of an award from a medical malpractice suit.
In February of 2015, AV was advised by Ramos to allocate the majority of her $114,000.00 in assets in energy sector investments despite the energy sector. After making the initial investments, Ramos steered the customer towards taking a larger position in the energy sector securities.
In one case, AV was advised by Ramos to purchase an investment in a coal company which had declined in value by at least 22 percent after the company issued a negative profit projection. By September of 2015, more than half of AV’s assets were invested in that coal company, with the remainder primarily invested in three other energy securities. FINRA determined that by March of 2016, more than 80 percent of the customer’s assets were concentrated in the coal company.
By acting on Ramos’s recommendations, the customer had realized losses of $86,891.00. FINRA determined that Ramos’s conduct was violative of FINRA Rules 2010 and 2111.
This is Ramos’s second time being sanctioned by FINRA. On September 1, 2016, he was suspended by the regulator supported by findings that he obtained a loan from a customer without authorization from Morgan Stanley. Letter of Acceptance Waiver and Consent No. 2014041737601. FINRA determined that he violated FINRA Rules 2010 and 3240.
FINRA Public Disclosure also reveals that a customer initiated investment related complaint in reference to Ramos’s conduct was resolved for $120,000.00 in damages based upon accusations of Ramos having made bad stock recommendations to the Morgan Stanley customer.
Between August 20, 2018 and November 21, 2019, Ramos was registered with Wynston Hill Capital.
