The Florida-based Soreide Law Group obtained the following information on FINRA’s website under, “Disciplinary and Other FINRA Actions, August 2016.”
Arthur Espinoza (CRD #1344849, Port Saint Lucie, Florida)
was barred by FINRA due to allegations that he engaged in an outside business activity without disclosing this activity to his member firm.
FINRA’s findings stated that Espinoza incorporated a company that he operated and obtained investors who invested more than $325,000. In return for the undocumented investments, Espinoza orally agreed to pay the investors an annual or semi-annual payment equaling 5.25 percent of their invested principal.
According to FINRA, Espinoza is unable to account for the funds he raised from the investors, is not currently able to pay the principal back, and does not have any credible plans to do so.
FINRA’s findings also stated that Espinoza failed to disclose outside brokerage accounts he controlled at two third-party FINRA member firms. Espinoza opened an account at one third-party firm for the previously mentioned company that he incorporated. Espinoza deposited many of the funds he raised from investors into the account, and also traded securities in the account. Espinoza also opened a master brokerage account for the previously mentioned company at the other third-party firm and opened subaccounts under the company’s master account for individual customers, many of whom were also his customers at his firm. Espinoza had full trading authority in these subaccounts, used that authority to perform more than 40 securities transactions totaling approximately $1.5 million on behalf of the sub-account owners, and charging $15,195 in commissions for performing those securities transactions.
Also, FINRA’s findings included Espinoza failed to disclose on his Form U4 reportable tax liens that remain unsatisfied and the civil judgment obtained by a former business partner against him in connection with a dispute over their joint insurance-making business. FINRA found that Espinoza made misrepresentations on firm compliance questionnaires in which he falsely indicated that he had disclosed to the firm all of his outside business activities, outside securities accounts, or on certain questionnaires, liens and judgments against him. FINRA also found that Espinoza failed to respond to several FINRA requests for documents and information, failed to provide timely responses to certain other requests outright, and provided false information in response to one request.
(FINRA Case #2016048881501)
Arthur Espinoza was registered in the securities industry for 29 years and some of the firms he was listed with were:
09/2005 - 12/2014 FREEDOM INVESTORS CORP. - VERO BEACH, FL
10/2003 - 09/2005 AMERITAS INVESTMENT CORP. - LINCOLN, NE
If you were a client of Arthur Espinoza formerly with Freedom Investors Corp of Vero Beach, FL, and suffered financial losses due to his recommendations, call the Pompano Beach, Florida-based Soreide Law Group for a free consultation with an attorney regarding the possibility of recovering your losses at: 888-760-6552.
Soreide Law Group represents clients nationwide on contingency and advances all costs. We are committed to recovering our clients’ losses due to the negligence or fraud of their stock brokers or financial advisors.
