FINRA fined, suspended, and ordered restitution of former Edward Jones (Paradise, CA) and Raymond James (Chico, CA) broker Ciro "Nick" Gilbert Cavazos for borrowing money from a client in contravention of firm policy and for failing to disclose the loan to either firm. Meanwhile, Cavazos' BrokerCheck report indicates a separate pending customer dispute alleging breach of contract, fraud and intentional misrepresentation, fraud and negligent misrepresentation, and financial elder abuse in connection with a variable annuity product.
According to FINRA's investigation into the loan, Cavazos (CRD #4438921) borrowed $10,000 from a customer while he was registered with Edward Jones, and carried that loan with him upon joining Raymond Jones several months later, along with the customer from whom he borrowed the money.
The findings indicate that the $10,000 loan was undocumented, did not indicate specific repayment terms or a maturity date, and was not disclosed to either Edward Jones or Raymond James. The loan also purportedly violated policies at both firms that generally prohibited borrowing money from clients.
Raymond James discharged Cavazos in March 2016 after finding he failed to disclose the loan to the firm.
The pending customer dispute, which alleges wrongdoing during Cavazos' time at Raymond James, has evolved into litigation in front of the Butte County, California Superior Court. A previously settled dispute listed in Cavazos' file alleged that Cavazos, while at Edward Jones, withdrew funds from an IRA account without the customer's permission or consent, resulting in a $35,000 tax liability.
If you have invested with Ciro "Nicholas" Gilbert Cavazos or with any broker or financial adviser who has improperly borrowed money from you in contravention of firm policy, and has failed to timely repay, failed to specify adequate terms, or has engaged in other action that has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.