Robert Juan Escobio of Miami Florida a stockbroker formerly registered with Southern Trust Securities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he neglected to cooperate with FINRA’s investigation into allegations of his potentially unlawful securities transactions or activities with customers of Southern Trust during the time that he was expelled by the regulator. Department of Enforcement v. Robert Juan Escobio Disciplinary Proceeding No. 2018059545201 (Feb. 5, 2020).

According to the Decision, Escobio’s lack of cooperation was egregious as he failed to respond to multiple FINRA requests for information and documentation relating to his activities which allegedly involved his engagements with customers of the securities broker dealer while statutorily disqualified. Escobio was statutorily disqualified by FINRA on July 27, 2017 because of a judgement entered against him on August 29, 2016 in which he was permanently enjoined from engaging in conduct violative of Commodity Exchange Act and ordered to refrain from registration with Commodity Futures Trading Commission (CFTC). Case No. I:14CV22739 (Aug. 29, 2016).

According to CFTC, who initiated the civil action resulting in the judgement against Escobio, Lorely Overseas Corp and Southern Trust Metals Inc. customers had been exposed to a fraudulent off-exchange precious metals scheme through Escobio and others. CFTC alleged that $2,600,000.00 in proceeds were accumulated by Escobio and others from at least one hundred thirty-five customers. The scheme allegedly resulted in more than $600,000.00 in losses for customers. CFTC additionally claimed that customers had been solicited and ultimately approved of purchases and sales of commodities for future delivery and commodity options during the period in which those transactions were subject of market contract requirements necessitating Escobio’s registration as a futures commission merchant. CFTC alleged that Escobio’s conduct was violative of Commodity Exchange Act.

FINRA Public Disclosure confirms that Escobio has been identified in five customer initiated investment related disputes pertaining to allegations of his misconduct during the period in which he was employed by securities broker dealers including Dean Witter Reynolds, Prudential-Bache Securities Inc. and Capital Investment Services Inc. Specifically, Escobio is referenced in a customer initiated investment related complaint which was settled for $13,547.34 in damages supported by allegations of stock trades effected by Escobio failing to be consistent with the customer’s investment objectives or tolerance for risk, and unwarranted losses resulting from those transactions because of the stockbroker’s activities at Prudential-Bache Securities Inc.

Another customer filed an investment related complaint involving Escobio’s conduct in which the customer requested $30,000.00 in damages based upon allegations that during the time that Escobio was associated with Capital Investment Services Inc., common and preferred stock recommendations were in no way suitable for the customer, trades were made without the customer’s knowledge or consent, and the customer’s equity portfolio had been churned.

Escobio was registered with Southern Trust Securities between June 22, 2000 and July 28, 2017.

The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.

Questions or comments regarding the source or accuracy of any information, including any subsequent developments, should be directed to:  [email protected]

This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer.

Guiliano Law Group, P.C.

Our practice is limited to the representation of investors. Over the last three decades, we have recovered more than a hundred million dollars for more than 1,000 injured investors from all over the United States and several foreign countries. We accept representation purely on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a confidential consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.

For more information concerning common claims against stockbrokers and investment professionals, please visit us at stockbrokerfraud.com

To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com

Stockbroker Fraud. Securities Arbitration and Investment Fraud Lawyers.  
National Practice. Contingent Fee. Confidential Free Consultation.

 (877) SEC-ATTY

1700 Market Street, Suite 1005
Philadelphia, PA 19103
Direct: (215) 413-8223
Toll Free: (877) 732-2889

1260 South Soto Street, Suite 7
Los Angeles, California 90023
Direct: (213) 255-3475
Toll Free: (877) 732-2889

2750 NE 185th Street, Suite 302
Aventura, Florida 33180-2877
Direct: (786) 490-2413
Toll Free: (877) 732-2889

See Important Disclaimer

Tags: ,

No comments yet.

Leave a Reply

Name (required)

Email (will not be published) (required)

Website