FINRA’s Department of Enforcement investigated Zapata’s alleged misconduct and determined he intentionally overstated the value of one of his customer’s accounts in order to conceal losses in the account. According to FINRA, the customer declined to have her account statements mailed to her home address due to security concerns, and as a result, she would frequently call Zapata and ask him to provide her with her account balance. FINRA alleged that in September 2012 Zapata intentionally lied to the customer and misrepresented to her that her account was worth approximately $170,000, when in fact it was actually worth only $108,225.
Based upon the foregoing alleged misconduct, FINRA contended Zapata violated FINRA Rule 2010. FINRA Rule 2010 requires that member firms and associated persons “observe high standards of commercial honor and just and equitable principles of trade.”
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 and damages investing with Zapata through Argentus, 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.