FINRA Bars Global Strategic Stockbroker In Theft Investigation
Gustavo Alberto Trujillo Franco of Old Bridge New Jersey a stockbroker formerly employed by Global Strategic Investments LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to a Default Decision containing findings that Franco failed to cooperate with FINRA’s investigation into accusations of a fraudulent transfer of a customer’s funds. Department of Enforcement v. Gustavo Trujillo Franco Disciplinary Proceeding No. 2019064884501 (May 28, 2020).
According to the Decision, Franco became the subject of an investigation during the period in which FINRA learned of his involvement with a securities broker-dealer that possibly executed fraudulent wire transfers to a shell company that he maintained an affiliation with. FINRA’s examination also focused on that securities broker-dealer’s connection to investment advisors who potentially engaged in inappropriate or unauthorized transactions and who potentially falsified customer documentation.
In October of 2019, Franco was instructed by FINRA personnel to provide recorded testimony in regard to his involvement with the securities-broker-dealer. Franco failed to make an appearance on November 18, 2019. He also failed to respond to another request that had been made by the regulator on December 16, 2019.
After two unsuccessful attempts at securing Franco’s appearance, FINRA Department of Enforcement filed a Complaint against Franco and provided him until April 16, 2020 to file an Answer. The stockbroker was warned in the Complaint that he could face sanctions for failing to respond. Franco never responded. FINRA’s Office of Hearing Officers found Franco to have defaulted.
Franco was registered with Global Strategic Investments between May 11, 2017 and March 15, 2018.