Financial Advisor Dion Padilla is Suspended for Fifteen Months.
According to FINRA, Dion Padilla, San Antonio, TX, allegedly effected unauthorized purchases of a variable annuity for his customer at Next Financial Group and concealed this information from the customer for over nine months. FINRA alleges Padilla repeatedly misrepresented that he had not invested the customer’s funds into a variable annuity.
The complaint further alleges that Padilla knowingly, willfully or recklessly made misrepresentations connection with the sale of the variable annuity to the customer. At the time Padilla purportedly presented the variable annuity application to the customer, he assured the customer that it was not for a variable annuity. Padilla allegedly convinced the customer to keep the variable annuity by reassuring him that the investment was not a variable annuity.
FINRA alleges Padilla caused the customer to invest an additional $558,889 into the variable annuity by falsely claiming that it was not a variable annuity. In reliance upon Padilla’s material misrepresentations, the customer initially invested $220,787 in the variable annuity and, in further reliance on the material misrepresentations, made an additional investment in the variable annuity of $558,889. The customer purportedly consistently and unequivocally told Padilla that he did not wish to purchase a variable annuity.
Padilla has been suspended from the securities industry for fifteen months and fined $10,000.
According to his FINRA Broker Check report, Padilla has been registered with Next Financial Group in San Antonio, TX since February 2006. He has two customer disputes listed on his Broker Report for allegations of unauthorized trading and failure to include a principal protection for life rider in connection with a recommended variable annuity investment.
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
Free Consultation
If you suffered losses investing with Dion Padilla, the attorneys at The White Law Group may be able to help you. For a free consultation, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information, please visit our website, www.whitesecuritieslaw.com.
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