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Written by 4:54 pm Blog, Securities Fraud Articles

NY Broker Barred from Industry

According to the Financial Industry Regulatory Authority (FINRA), former broker Jaime Andres Diaz has been barred from working in the industry by the Financial Industry Regulatory Authority and ordered to pay $600,000 in restitution to clients. FINRA found that Diaz made misrepresentations and omissions surrounding the purchase and sales of certain securities to customers and a fellow colleague.

Allegedly Diaz fraudulently received $900,000 from customers and a co-worker, which he converted and used for his own benefit. He is accused of using some of the money to make payments to friends and to cover office expenses.

FINRA found that Diaz engaged in a private securities transaction without obtaining prior authorization form his member firm. In addition Diaz misrepresented an outside business, and did not identify the promissory notes as outside business activities.

When brokers solicit investors to buy securities not authorized by the brokerage firm that they are registered with, the act can be considered “selling away.” If a broker is proven of “selling away,” the brokerage firm may still be liable for negligent supervision and responsible for investment losses.

According to FINRA BrokerCheck, Diaz worked in New York with GunnAllen Financial from 10/2003 to 08/2007, and with National Securities Corporation from 07/2007 to 12/2011.

If you were a client of Jaime Andres Diaz and would like to discuss your potential to recover your losses, please call the securities attorney of The White Law Group at (312) 238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.


Tags: , , , , , , , , , Last modified: July 17, 2015