Ex-Morgan Stanley Advisor Allegedly Defrauded 10 Clients of $3.45 Million
The Securities and Exchange Commission (SEC) has reportedly filed charges against Jesus Rodriguez, (CRD# 4888685) a former financial advisor, for defrauding ten brokerage account holders and advisory clients of over $3.475 million.
According to the SEC’s complaint, Rodriguez, employed at a large financial institution in El Paso from 2014 to 2021, orchestrated more than 250 fraudulent and unauthorized disbursements. These funds were allegedly misappropriated to cover personal expenses, including credit card bills, automobile purchases, and payments to family members.
Jesus Rodriguez Arrested for Wire Fraud
Rodriguez is also reportedly facing criminal charges. On January 12, the Federal Bureau of Investigation reportedly arrested Rodriguez on wire fraud charges, according to court records in El Paso County. Rodriguez had faced a prior arrest in October at the Mexico border, accused of exploiting the elderly and embezzling $56,000 from a West El Paso couple. Following that arrest, he was released on a $75,000 bond, as announced by officials in El Paso city.
According to his FINRA BrokerCheck profile, Rodriguez was a registered representative at Morgan Stanley in El Paso, Texas from 2009 until 2021.
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.
The SEC is seeking permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and a civil penalty.
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.
BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify if a broker or brokerage firm is registered with FINRA, review their employment history, licensing status, and any regulatory actions or complaints filed against them.
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
Failure to Supervise
FINRA Rule 3110 specifically outlines the supervisory obligations of broker-dealers. FINRA registered broker-dealers have a responsibility to supervise their registered representatives. One of the fundamental obligations of broker-dealers is to establish and maintain a supervisory system designed to achieve compliance with securities laws and regulations.
Failure to meet these supervisory obligations can result in disciplinary actions by FINRA, including fines and sanctions against the broker-dealer. If your broker dealer failed to supervise your advisor and you suffered investment losses, you may have recovery options.
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 700 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.
For more information, please visit our website, whitesecuritieslaw.com.
Tags: broker investigation, Jesus Rodriguez, Morgan Stanley, SEC charges Last modified: February 1, 2024