Broker Barred by FINRA for Borrowing $245,000 from Client

Soreide Law Group, a Securities Arbitration Law Firm, (888) 760-6552, obtained the following information on FINRA’s website under “Disciplinary and Other FINRA Actions, July, 2013.”

Frank Oswaldo Naula (CRD #1344900, Registered Representative, Merrick, New York)

was barred from association with any FINRA member in any capacity. In light of Naula’s financial status, no monetary sanction was imposed. The sanction was based on findings that Naula signed separate promissory notes representing numerous loans totaling approximately $245,000 from his customer, contrary to his member firm’s written procedures that prohibited a registered representative from borrowing money from a customer unless the customer was an immediate family member and the representative obtained the firm’s proper written approval. The customer was not a member of Naula’s family and Naula did not even attempt to obtain firm approval. The firm knew nothing about the loans until the customer’s estate asserted its claims in arbitration. The findings stated that Naula failed to appear for an on-the-record interview despite having notice and repeatedly obtaining a postponement.
(FINRA Case #2011027702801)

According to FINRA's BrokerCheck, Naula was previously registered with FINRA at the following brokerage firms:

WELLS FARGO ADVISORS, LLC
CRD# 19616
MELVILLE, NY
07/2003 - 01/2011

PRUDENTIAL SECURITIES INCORPORATED
CRD# 7471
NEW YORK, NY
11/1999 - 07/2003

PAINEWEBBER INCORPORATED
CRD# 8174
WEEHAWKEN, NJ
07/1994 - 11/1999

This ends the information obtained on FINRA’s website.

If you’ve experienced investment losses due to your stock broker/financial advisor’s recommendations, call Soreide Law Group for a free consultation with an attorney on how to potentially recover your losses: 888-760-6552.