Diego Jimenez (Jimenez) submitted a Letter of Acceptance, Waiver and Consent (“AWC”) pursuant to FINRA Rule 9216 of FINRA’s Code of Procedure in March 2016 to settle allegations he recommended mutual funds to customers without being registered with FINRA. As a result, the Financial Industry Regulatory Authority (FINRA) suspended Jimenez and fined him $5,000.
Jimenez (FINRA CRD No. 4557717) entered the financial industry in 2002 as a registered representative. From 2004 to 2010 and then from 2014 to 2015, Jimenez was registered with PFS Investments Inc. (a/k/a PFSI). From 2010 to 2014, Jimenez was not registered with PFS Investments. Jimenez is no longer associated with any FINRA member; however, he remains subject to FINRA’s disciplinary powers.
FINRA’s Department of Enforcement investigated Jimenez and alleged he engaged in securities-related conduct without being registered with FINRA. Jimenez voluntarily terminated his registration with FINRA through PFS Investments in 2010. Nevertheless, from January 2011 to December 2014, Jimenez solicited prospective mutual fund customers to invest $800,000 in approximately 35 mutual fund accounts. Jimenez also allegedly made more than 100 mutual fund presentations and discussed mutual fund investments with potential customers.
Based upon the foregoing misconduct, FINRA alleged Jimenez violated two FINRA Rules, namely NASD Conduct Rule 1031 and FINRA Rule 2010. For example, NASD Rule 1031 requires all persons engaged or to be engaged in the securities business of a member to be registered in the “category of registration to the function to be performed.”
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 or are the victim of investment fraud from dealing with Jimenez, you may be able to recover your losses through FINRA arbitration. We offer a free, no-commitment initial consultation. Please contact one of our attorneys at (800) 627-2179 to schedule a consultation.