FINRA fined and suspended former LPL Financial and Independent Financial Group (IFG) broker Jose Antonio Navarro of Los Angeles for private securities transactions away from the firm, and for improperly borrowing money from firm customers, resulting in losses.
According to the findings, Jose Navarro (CRD #2250454) allegedly recommended and helped facilitate five firm customers to invest $87,500 in an alternative energy company. When the company later filed for bankruptcy, the investors lost their entire investments.
Navarro then falsely represented to IFG via annual compliance reports that he did not engage in selling away, according to investigators. Navarro also purportedly gave the same false attestation to FINRA staff investigating the incident.
Finally, FINRA found that Navarro improperly borrowed money from firm customers in contravention of both firm and industry rules, borrowing $80,000 from two customers without IFG's approval.
After an internal investigation, IFG terminated Navarro's registration for purchasing a non-approved promissory note and "referring the note to clients without firm approval."
Prior to his misconduct at LPL and IFG, Navarro was registered as a broker at Mutual Service Corporation and Brookstreet Securities Corporation, both in Los Angeles, California.
If you invested with former LPL Financial and IFG broker Jose Antonio Navarro or with any investment adviser or firm in an unapproved private securities product sold away from and without permission from the FINRA-member broker-dealer, resulting in losses or other damages, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.