Jesus Rodriguez of El Paso, Texas, a stockbroker formerly registered with Morgan Stanley, is the subject of a customer initiated investment related complaint on February 18, 2022, in which the customer requested compensatory damages based upon allegations that Rodriguez made unsuitable transactions on credit with a legacy express credit line when Rodriguez was associated with Morgan Stanley.
Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Rodriguez is referenced in sixteen total customer initiated investment related disputes concerning Rodriguez’s conduct while associated with securities broker dealers, including Morgan Stanley. On January 24, 2022, a customer filed an investment related complaint involving Rodriguez’s activities in which the customer requested compensatory damages based upon allegations that Rodriguez misappropriated funds from the customer’s cash management accounts at Morgan Stanley.
Rodriguez is also referenced in a complaint that was settled on January 26, 2022, for $334,326.07 in damages based upon allegations that Rodriguez misappropriated funds belonging to the customer’s Morgan Stanley accounts between March 2014 and March 2020.
On February 17, 2022, a different customer initiated investment related complaint involving Rodriguez’s conduct was settled for $508,447.90 in damages based upon allegations that Rodriguez engaged in fraudulent activities concerning a credit line account when Rodriguez was associated with Morgan Stanley.
On August 28, 2023, one investor was paid $2,542,784.37, which was supposedly stolen by Rodriguez.
Rodriguez has also been barred from associating with any FINRA member in any capacity because he failed to cooperate with a FINRA investigation relating to his alleged use of a customer’s credit line. Letter of Acceptance Waiver and Consent No. 2021072373401 (November 29, 2021).
According to the AWC, on September 3, 2021, Morgan Stanley filed a Form U5 indicating that Rodriguez voluntarily resigned from the firm amid allegations concerning the registered representative’s use of a customer’s line of credit for Rodriguez’s personal gain. On October 8, 2021, in response to the Form U5 being filed, FINRA sent a request to Rodriguez for the production of documents and information. FINRA sent another request on October 15, 2021. On November 5, 2021, Rodriguez indicated through his counsel that he had received the requests but would not provide the documents or information requested. Therefore, Rodriguez violated FINRA Rules 2010 and 8210.
On January 24, 2024, the Securities and Exchange Commission charged Rodriguez with fraud for misappropriating more than $3.475 million from ten brokerage account holders and advisory clients. Securities and Exchange Commission v. Jesus Rodriguez, No. 3:24-CV-00027 (W.D. Texas filed January 24, 2024).
According to the SEC’s complaint, from 2014 to 2021, while employed as a registered representative and investment adviser representative in the El Paso office of a Morgan Stanley, “Rodriguez initiated more than 250 fraudulent and unauthorized disbursements from the accounts of ten of his brokerage customers and advisory clients. Rodriguez allegedly used the funds he misappropriated for personal expenses including to pay credit card bills, to buy automobiles, and to pay his family members. The SEC alleges that in many instances Rodriguez funded his misappropriations by incurring a debt for the account holder that was secured by the securities portfolios in their brokerage and/or advisory accounts. In other instances, Rodriguez allegedly misappropriated the proceeds of securities sales. The SEC further alleges that Rodriguez engaged in deceptive conduct to further conceal his misappropriation scheme, including by fabricating authorizations for the transfers and by lying to his employer when asked about certain transactions involving the affected accounts.”
