South Florida Arbitration & Litigation Lawyer Blog
Southeast United States Securities Fraud and Misrepresentation FINRA Arbitration Attorney, Russell L. Forkey, Esq.
May, 2011 – Complaint:
FINRA issued the following complaint. Issuance of a disciplinary complaint represents FINRA’s initiation of a formal proceeding in which findings as to the allegations in the complaint have not been made, and does not represent a decision as to any of the allegations contained in the complaint. Because these complaints are unadjudicated, you may wish to contact the respondents before drawing any conclusions regarding the allegations in the complaint.
Timothy D. Camarillo (CRD #5205051, Registered Representative, San Antonio, Texas, formerly licensed with Planmember Services Corporation) was named as a respondent in a FINRA complaint alleging that he entered into a contract with a company and sold approximately $370,000 worth of private securities to his customers, receiving over $13,000 in commissions without providing prior notice to, or receiving approval from, his member firm. The complaint alleges that the company provided Camarillo with sales literature and, without submitting the brochure to his firm for approval, Camarillo distributed the brochure to his customers; the brochure contained unwarranted, exaggerated and misleading statements, omitted material facts, and ignored risk while guaranteeing success. The complaint also alleges that Camarillo did not have a reasonable basis to recommend that his customer purchase the securities, had no experience selling these types of products, did not conduct proper due diligence, and did not sufficiently understand the products offered through the company or how the investments were managed. The complaint further alleges that all of Camarillo’s customers who invested in the products informed Camarillo that they were seeking preservation of capital and viewed the investments as a retirement investment; because Camarillo did not investigate the claims made in the sales literature that the returns were guaranteed, he had no basis to recommend the investment to customers seeking preservation of capital, and his recommendations to invest in the company were unsuitable. In addition, the complaint alleges that the products, as marketed, were securities, the sale of which required Camarillo to possess a Series 7 license; at the time he sold the securities, Camarillo held only a Series 6 license. (FINRA Case #2010023612301).
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