South Florida Arbitration & Litigation Lawyer Blog
April 2011 FINRA Account Executive Enforcement Action:
Daniel A. Contreras (CRD #4151950, Registered Principal, Ontario, California, formerly licensed with Multi-Financial Securities Corporation) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Contreras consented to the described sanction and to the entry of findings that he engaged in private securities transactions by recommending that customers invest in promissory notes, which were not approved investments of his member firm. The findings stated that Contreras failed to provide written notice to his firm describing in detail the proposed transactions and his proposed role therein, and stating whether he had received, or might receive, selling compensation in connection with the transactions. The findings also stated that the company that issued the promissory notes filed for Chapter 13 Bankruptcy, and all of Contreras’ customers lost their entire investment. The findings also included that Contreras borrowed approximately $65,000 from his customers, contrary to his firm’s written procedures prohibiting registered representatives from borrowing money or securities from any prospects or customers, including non-firm prospects/customers, and Contreras failed to pay back any of the money he borrowed. FINRA found that Contreras failed to respond to FINRA requests for information and testimony. (FINRA Case #2009018398701)
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