On February 29, the Financial Industry Regulatory Authority barred a broker,
David Joseph Escarcega, for allegedly selling risky alternative investments
to senior citizen clients. According to the allegations, Escarcega made
12 unsuitable recommendations to seven customers regarding debentures
that were linked to the secondary market for policies for life insurance.
Along with the bar, Escarcega was fined $52,270, which is the amount he
allegedly pocketed as commission on some of the sales.
Escarcega is accused of selling debentures from CWG Holdings, Inc., to
elderly clients between March of 2012 and January of 2013. FINRA states
that CWG purchased life insurance policies from policy owners for less
than the death benefit with the goal of profiting once the policy holder died.
According to FINRA, debentures such as those issued by CWG are suitable
only for investors who have the funds and could afford a complete loss
of their investment. FINRA accuses Escarcega making unsuitable sales of
the CWG debentures to various customers.
At Meyer Wilson, we take matters of securities fraud very serious, especially
when the individuals defrauded are elderly clients. We know that investment
fraud against seniors is done because they are considered vulnerable.
Our securities fraud lawyers work to protect the rights of these investors.
If you lost money with David Joseph Escarcega, contact our firm and learn
about your legal options in a
free consultation. Our goal is to help you recover your losses after broker misconduct and fraud.