FINRA Sanctions Santander Stockbroker For Customer Loan
Julian E. Munoz (also known as Julian Munoz Martinez) of Dorchester Massachusetts a stockbroker formerly registered with Santander Securities LLC has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that the stockbroker entered into a loan arrangement with a customer of Santander Securities in violation of the securities broker dealer’s policies. Letter of Acceptance Waiver and Consent No. 2018057416501 (Jan. 14, 2020).
According to the AWC, during the time that Munoz was associated with Santander Securities, he was required under its policies to refrain from borrowing or lending money to a customer of the securities broker dealer unless the customer was a company who loaned funds through its normal course of business. The AWC stated that customer MG lent $30,000.00 to Munoz when these rules were in effect. FINRA stated that the customer who lent Munoz money did not qualify as a permissible lender. In addition, there was no point in which he notified the securities broker dealer or procured permission for any loan arrangement.
FINRA also reported that there were compliance questionnaires administered to Munoz which called upon him to disclose his loan arrangement with the customer, but Munoz opted to conceal this information, attesting falsely that he did not borrow any customer’s funds. The customer has not been fully repaid, according to the AWC. By borrowing from a customer of the securities broker dealer against firm policy, Munoz violated FINRA Rules 2010 and 3240.
FINRA Public Disclosure reveals that Munoz has been identified in three customer initiated investment related disputes containing allegations of his misconduct while employed with Santander Securities. Specifically, a customer initiated investment related arbitration claim involving Munoz’s conduct was settled for $4,250,000.00 in damages based upon allegations that contractual obligations to the customer had been breached, the customer’s account was handled in a negligent manner, fiduciary duties had not been complied with, and the customer was defrauded with regard to closed end fund and municipal debt investments held in the customer’s account during the time that Munoz was associated with Santander Securities. FINRA Arbitration No. 15-03437 (Feb. 20, 2018).
Munoz is referenced in another customer initiated investment related arbitration claim which was resolved for $180,000.00 in damages founded on accusations of negligent recommendations or sales of closed end funds or municipal bonds for the customer’s account, lack of supervision by Santander Securities, and violation of a fiduciary duty which the stockbroker owed to the customer. FINRA Arbitration No. 16-01113 (May 14, 2018). Also, a customer initiated investment related arbitration claim concerning Munoz’s activities was settled for $205,000.00 in damages supported by allegations including breach of fiduciary duty, breach of contract, negligence, and fraud pertaining to transactions involving Puerto Rico closed end funds and municipal debt products. FINRA Arbitration No. 16-01113 (May 14, 2018).
Munoz is currently registered with Independent Financial Group LLC.