FINRA’s Department of Enforcement investigated Rodriguez and alleged he fraudulently sold promissory notes in Bull Run Capital Holdings, LLC (“BRCH”) to firm customers beginning in April 2014. According to FINRA, the BRCH promissory notes and equity self-offering materials represented that Rodriguez would use investor proceeds for general operational expenses. However, FINRA alleges Rodriguez improperly used the investors’ funds for personal expenses unrelated to the operation of BRCH.
From April 2014 through at least January 2015, Rodriguez offered and sold BRCH debenture and equity interests to at least six Avenir Financial customers. In total, Rodriguez raised approximately $175,000 from the aforementioned investors. Yet, Rodriguez allegedly used more than one-third, or $77,000, for his own personal use. Unfortunately, Rodriguez continues to have access to and control over the proceeds from the investments by the six investors, which remain in the BRCH bank account according to FINRA.
Based upon the foregoing misconduct, FINRA asserted Rodriguez violated several federal securities laws and financial industry rules and regulations. In particular, FINRA alleged Rodriguez willfully violated Section 10(b) of the Exchange Act of 1934, Rule 10b-5 thereunder, and FINRA Rules 2020, 2150 and 2010. For example, FINRA Rule 2020 provides that “[n]o member shall effect any transaction in, or induce the purchase or sale of, any security by means of any manipulative, deceptive or other fraudulent device or contrivance.” Whereas, FINRA Rule 2150(a) states: “[n]o member or person associated with a member shall make improper use of a customer’s securities or funds.”
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment losses investing with Cesar Omar Rodriguez through Avenir Financial, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact form or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.