Terminated JP Morgan Broker Hector Villalta Sanctioned for Unapproved Outside Business Activity

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FINRA fined and suspended former JP Morgan (Culver City and Santa Monica, CA branches) broker Hector Villalta for engaging in an outside business activity without prior written notice to or approval from JP Morgan.

AWC #2017053281101

The findings state that Villalta (CRD #5857282) worked as an independent contractor for a third-party company that leased vehicles, including luxury cars. Villalta earned compensation for his role in leasing and referring others to lease vehicles, in an arrangement that resembled commissions, in that Villalta earned compensation for each vehicle he leased and for each individual that he referred to the company.

Villalta's BrokerCheck file lists employment with JP Morgan Chase Bank as well as Source Specialist LLC in Los Angeles, which the Better Business Bureau gave an "F" rating to in 2017 after the company failed to respond to three complaints.

Source Specialist LLC's three unanswered BBB complaints allege several problems, including, "Business took my money but failed to register the vehicle in my name despite numerous requests," and, "I have continuously been lied to by the owner of the company as to when I would get the titles." Another customer alleged that the company delivered a different, less expensive vehicle than the one that customer paid for.

FINRA's AWC indicates Villalta did not timely provide written notice to or receive approval from JP Morgan to engage in this outside business activity, and when he ultimately mentioned the company to JP Morgan, he neglected to disclose that he was involved in leasing, furthermore inaccurately stating on multiple compliance certifications that he did not have any outside business activities to disclose.

JP Morgan Chase Bank discharged Villalta in 2017 for violating the affiliate bank's code of conduct regarding the unapproved vehicle subleasing business activity.

If you have invested with former JP Morgan broker Hector Villalta or with any registered representative or financial adviser who has solicited your participation in an undisclosed and unapproved outside business activity that has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.