Francisco Javier Sumavielle, of New York, New York, a stockbroker with Murex Capital, LLC, was fined $12,500.00 and suspended for seven months from associating with a Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized borrowing from customers. Letter of Acceptance, Waiver and Consent, No. 2015044025401 (May 24, 2016).

According to the AWC, on October 7, 2013, Sumavielle obtained $30,000.00 in funds via a personal loan from a firm customer, Person A. Apparently, Sumavielle was the authorized Murex representative on the accounts of Person A. Sumavielle reportedly made such arrangements with Person A for the personal loan without disclosing such arrangement to his firm at any point.

The AWC further stated that on February 7, 2014, Sumavielle obtained $99,912.00 in funds via a personal loan from another firm customer, Person B, by way of Person B’s entity. Just like with Person A, Sumavielle was the authorized Murex representative on the accounts of Person B’s entity. Additionally, Sumavielle did not disclose the lending arrangement with his firm at any point.

The AWC noted that prior to the lending arrangements, on September 17, 2012, Sumavielle signed an agreement with Murex in which he agreed to abide by the firm’s policies with respect to borrowing. According to the AWC, Sumavielle specifically affirmed to Murex that he would not borrow securities of monies from a firm client.

Apparently, the firm’s supervisory protocol, during the time in which Sumavielle made the lending arrangements with the clients, specifically proscribed representatives such as Sumavielle from borrowing from customers unless such arrangement was disclosed to Murex through a specific form-based process and approved. FINRA found that Sumavielle’s failure to obtain authorization regarding his lending arrangements with clients to be violative of FINRA Rules 2010 and 2340.

Guiliano Law Group

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