Jorge Antonio Netto of Coral Gables Florida a stockbroker currently registered with Boreal Capital Securities LLC (formerly known as Mora WM Securities Inc.) has been charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement with engaging in outside business activities that were not authorized and which involved a customer of the securities broker dealer loaning funds to a company because of Netto. Letter of Acceptance Waiver and Consent No. 2018058537302 (Aug. 13, 2021).
According to the Complaint, between April of 2017 and April of 2018, when Netto was associated with Mora WM Securities, he took part in undisclosed outside business activities involving the acquisition of a Sacramento property. This allegedly involved him and others creating a Florida LLC that would be used to finance the purchase of a marijuana growing and storage property in California. FINRA contends that Netto also had ownership in a Delaware LLC during that time. This Delaware LLC authorized him to undertake management of California LLC-2 who managed California LLC-1. FINRA alleged that the marijuana growing and storage property was purchased by California LLC-1.
The Complaint alleged that a customer became involved in Netto’s outside business activities. Netto allegedly told that customer to sell their existing holdings and then loan proceeds to California LLC-1 so that the property could be purchased. Netto received $119,000.00 through his involvement in the transaction according to the Complaint.
FINRA Department of Enforcement contends that Netto did not tell Wora WM Securities about his activities before engaging in them. He is accused of violating FINRA Rules 2010 and 3270 for undisclosed outside business activities.
The Complaint also states that compliance certifications were submitted to Mora WM Securities by Netto in January of 2018. In those certifications Netto represented and certified that he disclosed his outside business activities to the securities broker dealer. FINRA Department of Enforcement alleges that Netto provided a false certification because he did not inform Mora WM Securities that he owned and managed Florida LLC and Delaware LLC both of which were involved in the property acquisition. Netto is accused of violating FINRA Rule 2010.
Netto has been identified in three customer initiated investment related disputes regarding accusations of his wrongdoing while employed by First Union Securities Inc. FINRA Public Disclosure shows that a customer initiated investment related complaint regarding Netto’s conduct was resolved for $150,000.00 in damages supported by allegations that unauthorized options trades were executed in the customer’s account when Netto was associated with First Union Securities.
Netto is also referenced in a customer initiated investment related written complaint which was settled for $80,000.00 supported by accusations of unauthorized trading by Netto and of securities being inappropriately sold so that the customer’s margin calls could be satisfied. The claim alleges that the customer sustained damages on equities transactions effected by Netto at First Union Securities.
Another customer filed an investment related complaint concerning Netto’s activities where the customer sought $110,441.33 in damages founded on allegations that an options strategy was used for the customer’s account without the customer understanding the implications.
Netto has been registered with Boreal Capital Securities since April 27, 2017.