PENNSYLVANIAN EX-FINANCIAL ADVISOR FOUND GUILTY OF 11 COUNTS FRAUDULENT ACTS
A former stockbroker, Anthony Diaz of Scotrun, PA has been charged on 11 counts of wire and mail fraud for running a scam on investors. Each of the counts carries a maximum 20-year jail penalty.
Flouting FINRA Rules
During his hearing, jurors were informed that Mr. Diaz had unwitting clients sign empty papers, then forged their net worth, revenue, investment expertise and risk threshold to make it seem like they met the eligibility qualifications of the high-risk investments.
Mr. Diaz was however banned from the Securities industry in 2015 by the Financial Industry Regulatory Authority Inc.(FINRA) for causing roughly 80 clients to subscribe to annuity markets, regularly ruled to notable submission charges, without a sensible explanation for promoting those trades. His practice involved the marketing of additional high-commission stocks, according to FINRA’s complaint.
The Securities Exchange Act of 1934
The Securities Exchange Act of 1934 (SEA) was conceived to oversee securities trades on the developed exchange, after issue, guaranteeing more financial clarity and competence and less scam or manipulation.
The SEA endorsed the placement of the Securities and Exchange Commission (SEC), the governing arm of the SEA. The SEC has the jurisdiction to supervise securities—stocks, bonds, and over-the-counter securities—as well as exchanges and the regulation of financial professionals, including stockbrokers, traders, and investment advisors. It also controls the financial reports that openly traded companies are expected to reveal. The SEC also has the ability and obligation to lead investigations into possible breaches of the SEA, such as insider exchanging, selling unregistered assets, or stealing clients' funds.
From February 2007 through February 2010, Mr Diaz “dishonestly told” seven customers that ventures in real estate investment trusts were either “guaranteed or guaranteed to pay certain amounts of interest,” according to the FINRA complaint. His BrokerCheck profile is 104 pages lengthy and exhibits 62 declaration events, both surprisingly huge numbers. Mr Diaz served in the securities enterprise from 2000 to 2015 at 11 firms, the most recent of them was IBN Financial Services Inc. He was also dismissed, from all four of them. Moreover, his registration with IBN Financial Services Inc. has been annulled as of April 2015.
