Miguel Hernandez, of El Paso, Texas, a stockbroker with Thrivent Investment Management, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2015045623201 (Apr. 25, 2016).
According to the AWC, Hernandez acquired $25,000.00 from a customer, KH, who was an elderly individual whom Hernandez met at his church. Apparently, Hernandez informed the customer that he was in need of the monies in order to address business related expenses that were associated with a tax operation that Hernandez would run.
The AWC noted that Hernandez promised KH an interest of two percent in the tax business, as well as payments of $1,081.56 per quarter over a period of twelve up to forty quarters, in exchange for KH’s $25,000.00 investment. Hernandez and the individual reportedly made such arrangements through a silent partnership, where such arrangement was not known to any other individuals than the two.
The AWC stated that unbeknownst to KH, Hernandez did not have any tax business. Rather, Hernandez simply took KH’s funds for his own personal utilization. FINRA found that Hernandez’s conduct of obtaining KH’s funds through false pretenses and converting the customer’s funds, was violative of FINRA Rules 2150(a) and 2010.
Public disclosure records reveal that on May 14, 2014, Hernandez was terminated from Thrivent Investment Management amid allegation of his aforementioned misconduct. Thrivent alleged that Hernandez admitted to offering the customer a twelve percent return through the borrowing arrangement, that Hernandez never set up the business discussed with the customer, and that he put such funds to personal use instead.
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