FINRA Sanctions Jose Anthony Navarro for Private Securities Transactions, Improper Borrowing, and Other Misleading Conduct

Jose Anthony Navarro, formerly a General Securities Representative (CRD No. 2250454), violated several FINRA rules through his participation in unauthorized private securities transactions, borrowing money from clients without approval, and initially providing misleading information during a FINRA investigation. According to FINRA, Navarro violated Rules 3280, 3240, 8210, and 2010. For these violations, FINRA imposed a $20,000 fine and a twelve-month suspension from associating with any FINRA member.

Navarro began his securities industry career in 1992. He was registered with LPL Financial, LLC from 2009 to 2017, and subsequently with Independent Financial Group, LLC (IFG) from 2017 until his discharge in September 2023. IFG terminated Navarro for violating FINRA Rule 3280 by purchasing and recommending a non-approved private promissory note without firm approval.

Though Navarro is no longer registered with a FINRA member, he remains under FINRA jurisdiction.

FINRA Rule 3280 prohibits representatives from engaging in private securities transactions without prior written notice and approval from their firm. Rule 3240 bars representatives from borrowing from customers unless specific conditions are met, including firm approval. Rule 8210 requires full and accurate responses to FINRA inquiries. Rule 2010 broadly mandates that associated persons maintain high standards of commercial honor and just principles of trade. For example, a broker may not recommend a private investment opportunity to clients without alerting their firm, nor may they take out personal loans from customers without preapproval and firm oversight.

Between May 2017 and March 2020, Navarro participated in the sale of $87,500 worth of securities tied to an alternative energy company by referring five customers and assisting them in making investments—without notifying or receiving approval from his firms. The company later filed for bankruptcy, and investors lost their funds. Separately, Navarro borrowed $80,000 from two IFG customers in 2019 and 2022 through his tax preparation business, again without receiving prior firm approval. While he repaid these loans with interest, he falsely certified on compliance forms that he had not engaged in any such borrowing. Finally, during a 2023 FINRA investigation, Navarro initially submitted a misleading response by failing to disclose four of the five involved customers and omitting relevant email communications. He corrected his response only after follow-up inquiries and further testimony.

Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.

The content on this site reflects personal opinions and does not constitute statements of fact. No findings have been made against the firms or individuals mentioned. This blog is intended solely for educational purposes, drawing on publicly available information to provide general insights and a basic understanding of the law. It is not a substitute for legal advice.