Broker Background and Registration History
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Broker Name: Eduardo Leon Jr. (CRD #: 2232647)
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Firm: Global Financial Services, L.L.C. (CRD #35699)
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Experience: 33 years
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Registered With Global Financial: Since 1994
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State Licenses: Texas, Colorado, New York
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Total Disclosures: 6
Leon has spent the vast majority of his career—over three decades—at Global Financial Services in Houston, Texas.
FINRA Sanctions for Borrowing $750,000 From a Client
According to FINRA’s Acceptance, Waiver & Consent (AWC) settlement dated January 9, 2026, Leon reportedly admitted to borrowing $750,000 from a securities customer without notifying or obtaining approval from his firm, in violation of FINRA Rules 3240 and 2010.
Key Findings/Allegations
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August 2017: Leon borrowed $250,000 from a wealthy customer following damage to his home during Hurricane Harvey.
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September 2022: Leon borrowed an additional $500,000 from the same customer.
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The customer had been Leon’s personal friend for approximately 25 years.
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Neither loan was documented, and no repayment has been made.
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Global Financial’s written supervisory procedures strictly prohibited loans from customers without prior written approval, which Leon never sought.
FINRA Penalties
Global Financial Services discovered the loans in April 2025 and had already suspended Leon for one month internally and required forfeiture of two months’ commissions before FINRA imposed its sanctions.
Prior FINRA Sanctions for Unsuitable and Reg BI Violations
Leon’s disciplinary history also includes a May 8, 2025 FINRA action involving unsuitable recommendations and Regulation Best Interest (Reg BI) violations.
FINRA found that Leon:
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Recommended a volatility-linked exchange-traded note without understanding its risks
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Willfully violated Exchange Act Rule 15l-1(a)(1) (Reg BI)
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Recommended foreign currency-denominated corporate bonds that were unsuitable and overly concentrated
Sanctions
Eduardo Leon: Customer Complaints and Arbitration Settlements
Leon’s BrokerCheck report reflects multiple settled customer disputes, including:
These matters involved low-rated bonds, limited trading authority, and disputes over authorization and risk tolerance.
Broker Loans and FINRA Rule 3240
FINRA Rule 3240 strictly limits when a broker may borrow money from or lend money to a customer. Such arrangements are presumptively prohibited unless:
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The customer falls into a narrow category (such as a close family member or financial institution), and
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The broker provides prior written notice to the firm, and
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The firm provides written approval.
These rules exist because broker-customer loans create severe conflicts of interest, including pressure on clients, exploitation of trust, and impaired professional judgment.
Leon’s undisclosed loans reportedly violated these safeguards entirely.
Supervision Failures and Firm Responsibility
FINRA actions involving undisclosed loans often raise supervision concerns, including:
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Failure to detect red flags such as personal financial distress
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Inadequate monitoring of broker-client relationships
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Weak enforcement of written supervisory procedures
Broker-dealers have an affirmative duty under FINRA Rule 3110 to maintain supervisory systems reasonably designed to prevent misconduct. When supervision fails, firms may share liability for investor losses.
Investor Recovery Through FINRA Arbitration
Investors harmed by:
may be eligible to pursue damages through FINRA arbitration, the primary forum for resolving disputes between investors and brokerage firms.
Claims may include failure to supervise, unsuitable recommendations, breach of fiduciary duty, and violations of Reg BI.
Contact The White Law Group
If you invested with Eduardo Leon Jr. or Global Financial Services and suffered losses, you may have legal options.
The White Law Group, LLC is a national securities fraud and FINRA arbitration law firm with offices in Chicago, Illinois and Seattle, Washington.
For a free consultation, call 888-637-5510
whitesecuritieslaw.com
