Robert Frederico Montes of Palm Harbor Florida a stockbroker formerly employed by Morgan Stanley has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Montes failed to comply with FINRA’s investigation into allegations of him misappropriating funds belong to an elderly customer of Morgan Stanley. Letter of Acceptance Waiver and Consent No. 2019061459801 (July 24, 2019).
According to the AWC, FINRA received a tip in 2019 which alleged that a customer’s assets were potentially misused by Montes. Montes was then contacted by FINRA regarding the accusations of his misuse of the customer’s funds. Eventually, Montes reportedly received a request from FINRA which called upon him to provide the regulator with documents and information about his interactions with the customer.
The AWC stated that on July 1, 2019 – the day Montes was supposed to respond – he notified FINRA that he would not be handing anything over. Thereafter, Montes relayed that he would at no point be cooperating in FINRA’s investigation. FINRA found Montes’ failure to produce the information and documentation to constitute the violation of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that Montes has been identified in three customer initiated investment related disputes pertaining to allegations of his misconduct during the period in which he was associated with Smith Barney, Oppenheimer and Wells Fargo. Particularly, a customer initiated investment related civil action involving Montes’ activities was resolved for $12,750.00 in damages supported by accusations that unauthorized trades were effected in the customer’s account; transactions executed in the customer’s account were inappropriate; and misrepresentations had been made to the customer during the time that Montes was employed by Oppenheimer Co. Inc.
Thereafter, a customer filed an investment related complaint involving Montes’ activities in which the customer sought $11,011.00 in damages founded on allegations that when Montes was associated with Smith Barney, the customer was poorly advised which resulted in the customer incurring unwarranted fees and tax consequences. Montes is also the subject of a customer initiated investment related arbitration claim which settled for $57,500.00 in damages based upon accusations that during the time that Montes was employed by Wells Fargo, investment recommendations made to the customer were in no way suitable given the customer’s tolerance for risk and objectives for investing.
Montes’ registration with Morgan Stanley has been terminated as of July 5, 2019.
