Rudy Ruben Mejia Jr., of Austin, Texas, a stockbroker previously registered with Estrada Hinojosa Company Inc. has been sanctioned by Financial Industry Regulatory Authority (FINRA). Letter of Acceptance, Waiver, and Consent (AWC) No. 2023079264201. According to the AWC, Mejia violated FINRA Rules 3280 and 2010 by participating in private securities transactions without providing prior written notice to his employer.
Mejia co-founded and co-managed a pooled investment fund employing an options trading strategy, along with a management company serving as the fund’s general partner. Between November 2022 and July 2023, Mejia invested $100,000.00 in the fund’s limited partnership interests and facilitated the sale of an additional $738,000.00 in interests to seven investors, all of whom were friends or family but not customers of Estrada Hinojosa.
Mejia’s alleged participation in these private securities transactions included introducing the investment opportunity to certain investors, sharing details about the fund, and directing the fund’s legal counsel to distribute offering documents. In several instances, Mejia executed subscription agreements on behalf of the fund to formalize the investments. Additionally, Mejia anticipated receiving compensation for his role, ultimately earning performance fees through the management company after leaving Estrada Hinojosa.
These activities were conducted without notifying his employer or obtaining the firm’s approval, as required by FINRA Rule 3280. This lack of disclosure and approval resulted in a violation of FINRA Rule 2010, which mandates that associated persons uphold high standards of commercial honor.
Further findings showed that Mejia also violated FINRA Rules 3210 and 2010 by opening and managing undisclosed outside brokerage accounts. In September 2022, Mejia established two accounts at a separate member firm for the investment fund and its general partner, over which he maintained control and a beneficial interest. Mejia executed 304 transactions in these accounts while registered with Estrada Hinojosa, without obtaining the required written consent from his employer or notifying the executing firm of his association with Estrada Hinojosa. These omissions reflected a violation of FINRA Rule 3210, which requires prior written consent and proper notification when associated persons open accounts at other member firms.
As a result of these violations, FINRA imposed sanctions on Mejia, including an eight-month suspension from associating with any FINRA member in all capacities and a $10,000.00 fine. Mejia consented to the sanctions and findings without admitting or denying the allegations. His suspension started November 18, 2024, and will conclude on July 17, 2025, and the monetary penalty is to be paid upon reassociation with a member firm or prior to seeking regulatory relief.
Mejia’s stockbroker registration with Estrada Hinojosa was terminated on July 9, 2023.
