Michael Alejandro Castillero of New York New York a stockbroker formerly employed by Alexander Capital has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Castillero failed to testify in a FINRA investigation into accusations of (1) Castillero making unauthorized trades in a customer’s account (2) Castillero making attempts to settle a customer’s complaint without informing the firm and (3) Castillero refusing to provide information for FINRA personnel in reference to his alleged misconduct.
According to the AWC, Castillero was sent correspondence from FINRA on December 10, 2018 that called upon him to provide recorded testimony to FINRA personnel. Castillero was reportedly expected to testify according to Rule 8210; however, he refused to do so. Specifically, Castillero’s counsel revealed to FINRA on December 31, 2018 that Castillero would at no point testify throughout the investigation into his alleged misconduct. As a result, FINRA found Castillero’s conduct violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that Castillero is referenced in eleven customer initiated investment related disputes containing allegations of his misconduct during the time that he was associated with Alexander Capital and JP Turner & Company L.L.C. In particular, a customer initiated investment related arbitration claim involving Castillero’s activities was resolved for $235,000.00 in damages supported by accusations that Castillero placed transactions in the customer’s account that were not suitable for the customer, and churned the customer’s over-the-counter equities portfolio. National Association of Securities Dealers (NASD) Arbitration No. 06-05270 (Oct. 23, 2007).
Then, a customer initiated investment related complaint regarding Castillero’s conduct was settled for $59,500.00 in damages based upon allegations that Castillero breached his fiduciary duties to the customer, made misrepresentations concerning investment related information, and committed fraud concerning over-the-counter equities products held in the customer’s account. On November 11, 2016, another customer initiated investment related complaint involving Castillero’s activities was resolved for $100,000.00 in damages founded on accusations against Castillero including misrepresentation, breach of fiduciary duty, unauthorized trading, negligence, and unsuitable over-the-counter equities trades.
Subsequently, on July 13, 2017, a customer initiated investment related complaint concerning Castillero’s conduct was settled for $25,000.00 in damages supported by allegations that misrepresentations and omissions had been made to the customer, and unsuitable over-the-counter equities trades had been placed in the customer’s investment account. Thereafter, a customer initiated investment related arbitration claim concerning Castillero’s activities was resolved for $25,000.00 in damages based upon accusations that the customer’s account was handled in a negligent manner; and real estate investment trust and over-the-counter equities trades were placed in the customer’s account on an unauthorized and unsuitable basis. FINRA Arbitration No. 16-01702 (Feb. 1, 2018).
On May 1, 2018, another customer brought an investment related complaint regarding Castillero’s conduct in which the customer requested $52,900.00 in damages founded on allegations that Castillero placed unauthorized stock trades in a customer’s account and then attempted to settle the customer’s complaint outside the firm’s auspices. Moreover, a customer filed an investment related arbitration claim regarding Castillero’s activities in which the customer requested $231,758.14 in damages supported by accusations that between April of 2012 and November of 2016: the customer’s account was churned; misrepresentations had been made to the customer; and inappropriate over-the-counter equities trades were placed in the customer’s account.
Castillero’s association with Windsor Street Capital LP has been terminated as of June 19, 2017. He has been associated with four different broker dealers, all of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
