(FINRA Case #2012034936005)
David Joseph Escarcega (CRD #4367584, Phoenix, Arizona) – A NAC (National Adjudicatory Council) Decision became final in which Escarcega was barred from association with any FINRA member in all capacities and ordered to disgorge $52,270, plus interest.
The NAC affirmed the sanctions and findings imposed by the Office of Hearing Officers (OHO). The sanctions were based on findings that Escarcega intentionally or recklessly made materially false misrepresentations in connection with the sales of renewable secured debentures to customers.
The findings stated that Escarcega had no basis to tell his customers that the debentures were guaranteed or safe when the prospectus was replete with warnings about their high risk as an investment. The findings also stated that Escarcega made unsuitable recommendations of the debentures to customers by failing to take into account their investment objectives and low risk tolerances, as well as the excessive concentration of the debentures compared to the net worth of the customers.
The findings also included that Escarcega caused his firm to make and preserve inaccurate books and records. Escarcega failed to disclose on a customer’s account documents that the purchase of more than $100,000 in debentures was a product switch, and he also created account forms that falsely inflated a couple’s net worth.
Escarcega was discharged from Center Street Securities, Inc. in April 2016 due to the allegations. He had been employed at Center Street Securities, Inc. for 6 years.
If you feel you have been misled or taken advantage by David Joseph Escarcega or any Broker and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.