FINRA Fines Transamerica Broker For Unauthorized Trading
Roy Aurelio Gaytan of Thousand Oaks California a stockbroker formerly registered with Transamerica Financial Advisors Inc. has been fined $15,000.00 and suspended for eight months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he (1) failed notify the firm about his exercise of discretion in a customer’s account held away from Transamerica and (2) obstructed a FINRA investigation into accusations of Gaytan’s misconduct. Letter of Acceptance Waiver and Consent No. 2017054506902 (Aug. 7, 2018).
According to the AWC, between December 1, 2016 and April 1, 2017, discretion had been exercised by Gaytan to effect a Transamerica Financial Advisors customer’s transactions in an account that the customer held elsewhere. The AWC stated that Gaytan’s activities in the customer’s account had not initially been made known to Transamerica or the other FINRA member brokerage firm where trades were effected.
Apparently, Transamerica obtained information about Gaytan recommending that an account be established by customer LG at another brokerage firm, ET. The AWC stated that Gaytan was then provided access to LG’s accounts, where he traded in the customer’s account on a discretionary basis. LG evidently sustained investment losses and thereafter complaint about Gaytan’s activities to Transamerica. Gaytan reportedly admitted to Transamerica that he engaged in the discretionary trading of LG’s account when questioned within an investigation, resulting in his termination. FINRA found that Gaytan’s conduct was violative of FINRA Rule 2010 and NASD Conduct Rule 3050(c).
The AWC further revealed that FINRA launched an investigation into Gaytan’s activities giving rise to his termination from Transamerica. The AWC stated that on August 24, 2017, Gaytan was served by FINRA with request for his information under FINRA Rule 8210. Gaytan evidently did not provide FINRA with a response to the first request by the deadline imposed. On September 22, 2017, a second request for information had been served on Gaytan; however, Gaytan again failed to respond.
The AWC stated that on October 19, 2017, FINRA issued a Notice of Suspension, which Gaytan neglected to respond to. Gaytan was reportedly sent a letter from FINRA on November 13, 2017, which confirmed that Gaytan was suspended and warned Gaytan that he would be barred in all capacities if he did not request termination of his suspension by January 22, 2018.
The AWC stated that three days before the deadline, Gaytan submitted a request to terminate his suspension and provided information requested of him by FINRA. FINRA found that Gaytan’s responses were provided four months following the deadline originally imposed for the information. Consequently, FINRA found Gaytan’s conduct violative of FINRA Rules 2010 and 8210.
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