Former Advisor Jesus Rodriguez Sentenced to 12 Years for Multi-Million Dollar Fraud Scheme
The White Law Group continues to investigate potential securities lawsuits involving Jesus Rodriguez and the liability Morgan Stanley may have for failure to supervise him.
A former Morgan Stanley financial advisor, Jesus Rodriguez (CRD# 4888685), has reportedly been sentenced to 12 years in federal prison for orchestrating a multi-million dollar fraud scheme.
From 2018 to 2021, Rodriguez de la Cruz allegedly exploited his position to steal over $5.5 million from clients and his employer through fraudulent transfers and falsified documents. His alleged scheme included forging client communications to authorize unauthorized wire transfers, with some of the stolen funds used for luxury purchases, including a Lamborghini.
In addition to financial fraud, Rodriguez de la Cruz allegedly failed to report embezzled funds on his tax returns, causing a $408,055 loss to the IRS. He was indicted in December 2023, pleaded guilty in November 2024, and was sentenced in March 2025. His charges included wire fraud, engaging in unlawful monetary transactions, aggravated identity theft, and tax fraud.
SEC Lawsuit charges Jesus Rodriguez with Defrauding Clients
The Securities and Exchange Commission (SEC) originally filed a civil lawsuit against Rodriguez in January 2024 for defrauding ten brokerage account holders and advisory clients of over $3.475 million, according to the SEC’s complaint.
The complaint outlines Rodriguez’s methods, indicating that he often incurred debt secured by the securities portfolios in clients’ accounts or misappropriated proceeds from securities sales to fund his activities.
To conceal the alleged scheme, Rodriguez purportedly engaged in deceptive conduct, such as fabricating authorizations for transfers and providing false information to his employer when questioned about certain transactions.
Jesus Rodriguez– FINRA BrokerCheck Profile
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
Rodriguez’s broker report indicates that he was discharged by Morgan Stanley in 2021 after allegations of “use of client line of credit for his personal benefit.” He reportedly has 13 customer complaints on his record. FINRA, the securities regulator, reportedly barred Rodriguez in November 2021, as we previously reported.
According to his FINRA BrokerCheck profile, Rodriguez was affiliated with the following firm during his career:
06/01/2009 – 09/03/2021, MORGAN STANLEY (CRD#:149777), EL PASO, TX,
B, 08/05/2008 – 06/01/2009, CITIGROUP GLOBAL MARKETS INC. (CRD#:7059), EL PASO, TX
B, 04/12/2005 – 08/08/2007, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691), EL PASO, TX
Broker Misconduct and Failure to Supervise
Broker misconduct occurs when financial advisors engage in unethical or fraudulent practices, such as misrepresenting investments, unauthorized trading, or misusing client funds. FINRA-registered broker-dealers have a duty to supervise their brokers to prevent such misconduct.
If the firm fails to supervise its brokers properly, it can be held liable through FINRA arbitration. Investors who suffer losses due to a broker’s misconduct can file a claim against both the broker and the firm, alleging failure to supervise. If a firm neglects this duty, it may be ordered to compensate the affected investor through an arbitration award.
Class Action Lawsuit vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class action lawsuits as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
If you have suffered losses investing with Jesus Rodriguez, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 800 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
Tags: broker investigation, Jesus Rodriguez, Morgan Stanley, SEC charges Last modified: April 4, 2025
