Broker Barred by FINRA for Allegedly Selling Risky Investments to Seniors
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.