FINRA Investment Fraud and Mismanagement Arbitration Attorney, Russell L. Forkey, Esq.

February, 2011:

Carlos C. Sarmiento Jr. (CRD #5003883, Registered Representative, San Antonio, Texas) submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity and ordered to pay $82,350, plus interest, in restitution to a member firm. Sarmiento shall provide proof of the payment of the restitution to FINRA. Without admitting or denying the allegations, Sarmiento consented to the described sanctions and to the entry of findings that he converted a total of approximately $82,350 through checks, which he took and forged from a joint brokerage account firm customers held. The findings stated that Sarmiento admitted to one of the customers that he had taken the checks belonging to the customers’ joint brokerage account, admitted to stealing their money, indicated that he would return the money and asked that he not be reported. The findings also stated that Sarmiento’s former member firm contacted his current firm regarding Sarmiento’s conversion of customers’ funds while at the former firm, and when questioned, Sarmiento admitted to having taken the customers’ funds. The findings also included that Sarmiento failed to respond to FINRA requests for information and documents. (FINRA Case #2009019888601).