Two former JP Morgan Chase Securities Inc.-registered brokers, Fernando L. Arevalo and Jimmy E. Caballero are the subjecct of regulatory charges alleging theft. Reportedly, the Financial Industry Regulatory Authority (FINRA) permanently barred both Caballero and Arevalo from the securities industry.
FINRA’s investigation of the two brokers found that they allegedly collaborated to steal approximately $300,000 from one of their clients, a widow who had diminished mental capacity. Reportedly, the client held accounts at both JP Morgan and a related bank affiliate. She sold two annuities between April and July 2013 and deposited the proceeds — approximately $300,000 — into a bank account that had been opened for her by Arevalo.
Subsequently, the funds were allegedly withdrawn using two cashier’s checks. On the same day, the money was allegedly deposited by Caballero into a joint account he opened at a different bank in his name and the client’s name. When the deposits were questioned by the bank and further confirmation was required, Arevalo allegedly drove the client to the bank so she could confirm the source of the funds.
Once the deposits were cleared, numerous checks payable to Arevalo and personal debit card purchases allegedly made by Caballero and Arevalo depleted the funds in the account. These purchases allegedly included real estate loan payments, various retail purchases and a payments on a car loan. The investor was not aware of the purchases or withdrawals on the account and allegedly did not give any authorization for these transactions.
Caballero and Arevalo were registered with Chase Investment Securities until around October 2012, when it merged with JP Morgan. At that time, they became JP Morgan-registered brokers. According to stock fraud lawyers, firms have a responsibility to adequately supervise their registered representatives and can be held liable for client losses if they fail to provide such supervision. Reportedly, the two brokers failed to cooperate with FINRA’s investigation but JP Morgan has reimbursed the victim for the stolen funds.
If you lost money because of broker theft or misconduct, you may be able to recover damages via FINRA arbitration. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or email@example.com for a no-cost, confidential consultation.