Jorge A. Reyes (CRD #4256834, Miami, Florida) was fined $4,009,000 plus interest, in restitution to clients and was barred from association with any FINRA member in all capacities. This FINRA sanction was based on the alleged findings that Reyes defrauded customers a violation of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 and Sections 17(a)(2) and (a)(3) of the Securities Act of 1933.
The findings found that Reyes allegedly:
- made multiple false and misleading statements and material omissions to investors related to the use of their funds (FINRA Disciplinary Actions March 2020)
- made multiple false and misleading statements and material omissions to investors related to the risks associated with their investments (FINRA Disciplinary Actions March 2020)
Reyes collected salary, bonuses, and commissions from these funds and spent it on personal expenses. According to the FINRA report, Reyes did not take into account the entire circumstances of his clients when choosing how to invest their funds.
Reyes allegedly used power points in presentations to clients with misleading information which failed to disclose the high-risk nature of the investments.
In particular, one case involved a recently divorced stay at home mother who could not bear the risk of losing her $2.5 million life savings. Reyes recommended she invest $1.45 million in high-risk offerings. The customer could not understand the investment documents and relied on Reyes to explain the particulars of her investments. (FINRA Disciplinary Actions March 2020)
Violations such and this amongst others lead to disciplinary actions and fines.
If you lost money with Jorge Reyes or any broker or brokerage firm, call us immediately to discuss your situation. We are here to attempt to recover your investment losses. NO RECOVERY, NO FEE! Costs are additional.
The Blum Law Group, a National Securities Arbitration and Litigation Law Firm, has recovered well over $100 Million for investors nationwide. Our attorneys have represented thousands of investors for approximately 25 years!