Robert Juan Escobio, of Miami, Florida, a stockbroker formerly registered with Southern Trust Securities, Inc., has been subject of a Financial Industry Regulatory Authority (FINRA) National Adjudicatory Council Notice denying an application furnished by Southern Trust Securities, Inc. for Escobio to be associated with the firm based upon accusations that Escobio engaged in fraudulent sales practices and was not able to be adequately supervised by the firm. Case No. SD-2130 (July 27, 2017).
FINRA Public Disclosure confirms that Escobio has been subject of two additional regulatory actions concerning his wrongdoing. Particularly, on August 29, 2013, Escobio was fined $50,000.00 by National Futures Association according to a NFA Order containing findings that he contracted with a futures commission merchant which was not registered, and concealed his conduct through transferring money to foreign affiliates and another futures commission merchant. Case No. 13-BCC-015 (Aug. 29, 2013). The Order stated that Escobio’s conduct was violative of Rule 2-4 in that regard. He was additionally found to have violative Rule 2-5 for failing to report a customer complaint.
Moreover, Escobio was ordered to pay a $375,031.99 fine and $2,103,617.00 in restitution according to an Order issued by the United States District Court for the Southern District of Florida, wherein the Court held in favor of the United States Commodity Futures Trading Commission and found that Escobio committed fraud through engaging in illicit precious metal transactions as a control person for ST Metals. U.S. Commodity Futures Trading Commission v. Southern Trust Metals, Inc., et al., No. 14-CV-22739-KING (S.D. Fla. July 29, 2016). Apparently, the precious metals scheme caused one-hundred thirty-five customers to lose $600,000.00. The Court held that the defendants’ conduct was violative of Commodity Exchange Act Sections 4(A), 4B(A)(2)(A), 4(B), 4(C), 4(D), as well as 6(C).
FINRA Public Disclosure confirms that on March 13, 2016, a customer initiated investment related written complaint involving Escobio’s conduct was settled for $30,000.00 in damages supported by allegations against Escobio and Capital Investment Services, Inc. including unauthorized and unsuitable transactions, churning of the customer’s investment portfolio, and the failure to diversify the customer’s equities holdings.
Escobio’s registration with Southern Trust Securities, Inc. was terminated as of July 28, 2017. He has been associated with eight different broker dealers, one of which has been expelled by securities regulators for violation of federal securities laws or is otherwise defunct.
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