Juan Carlos Sosa of Studio City, California, a stockbroker registered with SagePoint Financial Inc. (now known as Osaic Services Inc.), has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Sosa engaged in the unauthorized transfer and use of customer funds during the time that he was associated with SagePoint Financial Inc. Letter of Acceptance, Waiver, and Consent No. 2022075400501 (March 21, 2024).
According to the AWC, the regulator’s investigation into Sosa’s actions began following a July 7, 2022, disclosure by SagePoint on an amended Form U4. This form disclosed a customer complaint alleging that Sosa might have transferred funds from one customer’s trust account to another customer’s account. Shortly after, on July 18, 2022, SagePoint filed a Form U5, which stated that Sosa was permitted to resign during the firm’s review concerning allegations that he was named as a successor trustee and beneficiary of a customer’s trust.
FINRA found that Sosa, from April 2017 through November 2018, used his authority over a bank account he opened for an elderly customer. The account was opened at Bank A, where Sosa had the authority to manage transactions including writing checks. He reportedly transferred over $579,000.00 from the customer’s brokerage account at SagePoint to this checking account at Bank A. Without authorization, Sosa reportedly wrote checks totaling more than $220,000.00 to himself from the customer’s account, which he deposited into his own personal bank account. Additionally, he is accused of writing checks exceeding $111,000.00 to American Express to pay his credit card bills.
FINRA stated that Sosa engaged in conversion by taking and exercising ownership over his customer’s property. He violated FINRA Rules 2150(a) and 2010.
FINRA Public Disclosure reveals that Sosa is referenced in four customer initiated investment related disputes related to Sosa’s conduct while associated with securities broker dealers. On October 4, 2004, a customer initiated investment related complaint involving Sosa’s conduct was settled to resolve allegations that Sosa made omissions of material facts and made unsuitable recommendations in variable annuities while Sosa was employed with WM Financial Services Inc.
On May 4, 2005, a customer initiated an investment related complaint involving Sosa’s conduct, which was settled for $9,271.99 in damages. According to the complaint, Sosa made unsuitable recommendations regarding variable annuities, given the customer’s liquidity needs during the time that Sosa was employed with WM Financial Services Inc.
On June 24, 2009, a customer filed an investment related complaint involving Sosa’s conduct in which the customer requested $291,000.00 in damages. The customer alleged that the real estate securities purchased on October 27, 2008, were unsuitable and that the customer was misled because of reduced monthly distributions and the suspension of the share redemption program. This occurred while Sosa was associated with Sagepoint Financial Inc. The complaint was denied on July 17, 2009.
On June 10, 2022, a customer initiated a complaint about Sosa, requesting $100,000.00 in damages based on allegations that Sosa was involved in decisions regarding the transfer of trust property. It was also alleged that either Sosa or another SagePoint employee issued a trust check to another customer and deposited it into that customer’s account, and failed to ensure required minimum distributions from a related customer account. The complaint was denied on August 3, 2022.
Sosa was associated with Sagepoint Financial Inc. in Studio City, California from October 31, 2005, to July 18, 2022. He later joined Independent Financial Group LLC in Studio City, California from August 3, 2022, to March 21, 2024.
