The Financial Industry Regulatory Authority (FINRA) recently filed a complaint (Disc. Proceeding No. 2014040158902) against Investors Capital financial advisor Robert Estevez (Estevez). The underlying basis of the complaint alleged Estevez recommended and executed 25 short-term steepener transactions in 19 customer accounts while working for Investors Capital. Estevez settled the complaint with FINRA and accepted a two-month suspension and $20,000 fine.
Estevez (FINRA CRD No. 3161419) has been a member of FINRA since 1998. From 2008 to September 2016, Estevez worked for Investors Capital Corporation (“Investors Capital”). Estevez currently works for Joseph Gunnar & Co., LLC as a general securities representative. Estevez’s FINRA BrokerCheck report contains 9 disclosures, including 5 customer disputes that were all either denied or withdrawn.
FINRA’s Department of Enforcement brought a complaint against Estevez for the following alleged misconduct. FINRA alleged that, between May 2011 and September 2012, Estevez recommended and executed 25 short-term steepener transactions in 19 customer accounts. Steepeners are complex, structured products with returns linked to the spread between longer-and shorter-term interest rates. These type of structured products may not be suitable for all investors because the secondary market for these products may be illiquid, which means investors may not be able to liquidate these investments on their own terms.
Based upon the foregoing misconduct, FINRA alleges Estevez violated NASD Conduct Rule 2310 and FINRA Rules 2111 and 2010. FINRA Rule 2111, for example, requires financial advisors to recommend suitable investments and investment strategies to their clients (known as the suitability rule) based upon the client’s unique financial situation, including investment objectives and risk tolerance.
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 investing with Estevez through Investors Capital, 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 or complete our free case evaluator.