Did you lose money investing with Jorge Reyes (CRD# 4256834)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Jorge Reyes. If you suffered losses investing with Jorge Reyes, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of January 22, 2023, Jorge Reyes’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
1 Customer Dispute
1 Regulatory Event
November 9, 2021 – A NAC decision became final in which Reyes was barred from association with any FINRA member in all capacities and ordered to pay $4,009,000, plus prejudgment interest, in restitution to customers. The NAC affirmed the findings, in part, and modified the sanctions imposed by the OHO. The sanctions were based on the findings that Reyes violated Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder and FINRA Rule 2020. The findings stated that Reyes engaged in fraud by misrepresenting and omitting material facts when he recommended and sold promissory notes to customers, as well as when
he used the marketing materials that he created to promote those offerings. Reyes falsely told customers that the promissory notes were safe investments like bonds and did not inform them that the promissory notes were in fact high-risk, illiquid investments that carried with them the risk of total loss. The marketing materials also falsely represented that any use of investor funds would be preceded by a comprehensive due diligence process, when in fact no such process existed or was performed. The findings also stated that Reyes made unsuitable recommendations to a customer, in violation of FINRA Rule 2111. Reyes was aware that the customer had a low tolerance for risk and that her investment objectives were to preserve
her assets and generate income, but he nevertheless recommended that the customer invest more than half of her net worth in promissory notes from the private placement offerings. The findings also included that Reyes violated FINRA rule 2010 when he converted funds from a customer who intended to use the money to establish an incubator fund and to purchase a promissory note in a private placement offering. Reyes used none of these funds for their intended purpose, and instead used all the money as if it was his own. Reyes transferred the money to his personal checking account, provided money to a relative of his girlfriend and paid personal expenses, including those for rent, a car, credit cards, groceries, personal trips, dining, shopping and alimony. Finally, FINRA found that Reyes created and used marketing materials that did not comport, in several ways, with FINRA Rule 2210 and the standards that apply to the public communications of FINRA members and their associated persons. Reyes did not disclose in any of the marketing materials that he created for the private placement offerings the risks inherent in an investment in the promissory notes. In addition, the materials Reyes used to market the promissory notes contained several false, exaggerated, unwarranted and misleading statements and falsely implied that several regulatory organizations endorsed the promissory notes he recommended and sold to customers. The NAC declined to find that Reyes violated reasonable-basis suitability requirements when he recommended that customers purchase promissory notes. (FINRA Case #2016051493704)
Current and Previous Registrations
03/09/2010 – 01/24/2017 CP CAPITAL SECURITIES (CRD#:15029) MIAMI, FL
FINRA expelled the firm on 07/31/2017
01/02/2007 – 06/22/2007 RBC CAPITAL MARKETS CORPORATION (CRD#:6579) AVENTURA, FL
05/04/2006 – 01/02/2007 CARLIN EQUITIES, LLC (CRD#:31295) AVENTURA, FL
08/23/2001 – 05/17/2006 CP CAPITAL SECURITIES (CRD#:15029)MIAMI, FL
FINRA expelled the firm on 07/31/2017
09/22/2000 – 10/18/2001 THE PARTNERS FINANCIAL GROUP, INC. (CRD#:31979) MIAMI, FL
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Jorge Reyes and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
