FINRA Sanctions Morgan Stanley Stockbroker

Arbitration Law Firm

Francisco Javier Valenzuela of Tucson Arizona a stockbroker formerly registered with Morgan Stanley has been fined $10,000.00 and suspended for eight months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based in part on allegations that Valenzuela failed to timely cooperate with FINRA personnel while he was investigated for the circumstances leading to his termination from Morgan Stanley. Letter of Acceptance, Waiver and Consent No. 2018057266702 (Dec. 17, 2019).

According to the AWC, FINRA’s investigation into Valenzuela’s activities began following receipt of a Uniform Termination Notice for Securities Industry Registration (Form U5) from Morgan Stanley which confirmed that Valenzuela was terminated by the securities broker dealer supported by accusations that it declined to implement supervisory procedures for Valenzuela that had been established because of concerns or allegations of Valenzuela’s violative activities in the securities industry.

Between May 11, 2018 and June 26, 2018, three requests had been made by FINRA for Valenzuela’s information and documentation in response to the information Morgan Stanley provided to the regulator. Valenzuela was not cooperative as he failed to respond to those requests. By July 20, 2018, Valenzuela was issued a Notice of Suspension from FINRA; and by August 13, 2018, he was issued a Suspension from Association letter. Valenzuela was barred by FINRA on October 23, 2018 but this was lifted on November 16, 2018. FINRA stated that after partially complying with its requests, Valenzuela was not timely cooperative with additional requests for his information and documentation. The regulator found Valenzuela’s conduct violative of FINRA Rules 2010 and 8210.

FINRA Public Disclosure confirms that Valenzuela is identified in two customer initiated investment related disputes containing accusations of his misconduct while employed with Chase Investment Services Corp. Specifically, a customer initiated investment related complaint concerning Valenzuela’s activities was resolved for $12,269.77 in damages based upon allegations that misrepresentations had been made by the stockbroker concerning mutual funds.

Also, Valenzuela is referenced in a customer initiated investment related complaint where the customer sought more than $5,000.00 in damages supported by accusations that false or misleading statements had been made regarding the terms and conditions of an annuity; and the customer was sold an annuity which failed to be suitable given the customer’s goals, risk tolerance or financial needs