FINRA’s Department of Enforcement initiated an investigation into Esparza’s alleged misconduct. Specifically, FINRA’s investigation concerned allegations Esparza committed a sales practice violation when he accepted a $67,500 loan from two firm customers. In connection with this investigation, FINRA sent Esparza a request to provide documents and information pursuant to FINRA Rule 8210. According to FINRA, Esparza acknowledged receipt of FINRA’s Rule 8210 requests; yet he failed to cooperate with FINRA’s investigation.
Based upon the foregoing alleged misconduct, FINRA asserted Esparza violated FINRA Rules 2010 and 8210. Specifically, FINRA Rule 8210 authorizes FINRA, in the course of its investigations, to require persons associated with a FINRA member to “provide information orally, in writing, or electronically . . . with respect to any matter involved in the investigation...” Here, Esparza failed to provide information in response to FINRA’s request, thereby violating FINRA Rule 8210.
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 damages with Esparza while employed by Princor, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.