The White Law Group is investigating potential claims involving former financial advisor David J. Escarcega and Center Street Securities in Phoenix, AZ.
David J. Escarcega, was barred by the Financial Industry Regulatory Authority (FINRA) in 2016 for reportedly making unsuitable investment recommendations to clients.
According to reports, Escarcega allegedly recommended debentures issued by GWG Holdings Inc. to 12 clients. The debentures were apparently linked to life insurance policies and considered high-risk debt instruments.
In addition to being barred from the industry, FINRA reportedly sanctioned Escarcega $52,270, the amount he earned in commissions from the unsuitable investment recommendations.
According to BrokerCheck, Escarcega was a registered representative with Center Street Securities in Phoenix, Arizona from March 2010 until he was terminated in April 2016. He has six disclosures listed on his broker report.
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
If you were a client of David J. Escarcega and suffered losses, The White Law Group may be able to help you recover your losses by filing a FINRA arbitration claim against Escarcega’s former employer. For a free consultation with a securities attorney call 888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.