Soreide Law Group, based in South Florida, obtained the following information from FINRA’s website under, “Disciplinary and Other FINRA Actions” October 2021, regarding the following broker/financial advisor currently registered with OPPENHEIMER & CO. INC. in Miami, Florida.
Cesar Augusto Hurtado (CRD #4137948, Miami, Florida)
On August 6, 2021 an Acceptance, Waiver and Consent (AWC) was issued in which Cesar Augusto Hurtado was fined $5,000, suspended from association with any FINRA member in all capacities for 45 days (9/7/2021 – 10/21/2021) and is required to attend and satisfactorily complete no less than 10 hours of continuing education concerning options trading and customer suitability.
Without admitting or denying FINRA’s findings, Cesar Augusto Hurtado consented to the sanctions and to the entry of findings that he allegedly recommended and effected unsuitable put spread investment strategies in client accounts.
FINRA’s findings stated that the clients were allegedly inexperienced options investors with relatively conservative investment objectives and relied on their brokerage accounts for income. Cesar Augusto Hurtado understood that put spreads are designed as a risk-containment strategy and allegedly recommended such investments to the clients in those terms. FINRA alleges that in practice, with certain put spread transactions, Hurtado recommended that the clients forego this risk mitigation mechanism. In many instances, according to FINRA, after a client held a security for a period of time, Hurtado allegedly recommended that the client sell the security at a loss larger than the original put spread’s maximum loss.
According to FINRA, Cesar Augusto Hurtado also magnified the risk of numerous put spread transactions, and subsequent assignments, by allegedly recommending that the clients fund assignments on margin, thus increasing risk by exposing the account to margin calls and by requiring the client to pay interest on the margin loan.
FINRA states that both accounts saw individual assignments of nearly $1 million funded on margin and Hurtado recommended that the clients over-concentrate their options investments in the energy sector, further increasing the risk of loss once the client took assignment of the subject securities.
Cesar Augusto Hurtado’s recommendations allegedly caused approximately $1.6 million in net losses for the clients. According to FINRA, those losses could have been avoided or substantially limited through suitable investment recommendations. Both clients settled claims against Hurtado’s member firm in connection with his conduct for a total amount of $560,000, to which Hurtado personally contributed $280,000.
(FINRA Case #2017055890901)
According to FINRA’s BrokerCheck, Cesar Augusto Hurtado, has been registered in the securities industry for 21 years and was listed with 2 firms. Hurtado has 3 disclosures on his FINRA CRD report. In addition to the Regulatory disclosure, 2 are settled “Customer Disputes.”
In August of 2019, there was a dispute filed alleging, “CLAIMANT ALLEGES CLAIMS FOR NEGLIGENCE, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT, FRAUD AND NEGLIGENT MISREPRESENTATION CONCERNING THE INVESTMENTS IN HER ACCOUNTS. FROM 11/1/2013 TO PRESENT.” The settlement amount was $275,000.00.
In September of 2017, the dispute alleged, “Claimants assert claims for fraud, negligent misrepresentation, breach of fiduciary duty and negligence in connection with the investments in, and management of, their accounts. Accounts open from 2003-2017.” The settlement amount was $285,000.00.
Hurtado denies the allegations.
Cesar Augusto Hurtado has been registered with the following firm, as a broker since 2003, and financial advisor since 2005:
OPPENHEIMER & CO. INC.
2601 SOUTH BAYSHORE DRIVE SUITE 1900
MIAMI, FL 33133
If you or a loved one have experienced financial losses due to the actions or recommendations of Cesar Augusto Hurtado with OPPENHEIMER & CO. INC. in Miami, Florida, contact the South Florida-based Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis and represents clients nationwide before FINRA.