September 14, 2018

Customer Files Complaint Against Hilltop Securities Over Excessive Trading

AFIN American Finance Trust

Customer Files Complaint Against Hilltop Securities Over Excessive Trading

Walter Roland Valenzuela (CRD#: 2280224, Del Mar, California) has been a registered representative of Hilltop Securities Inc. since December 10, 2008. Financial Industry Regulatory Authority (“FINRA”) BrokerCheck discloses that a Hilltop Securities Inc. customer filed a complaint on July 23, 2018 refencing Valenzuela’s misconduct.

Hilltop Securities Accused Of Excessive UIT Trades

The customer alleged in the complaint that Valenzuela poorly advised the customer, and misrepresented information about investing in unit investment trusts. In addition, the customer contended that Valenzuela excessively traded unit investment trusts products in the customer’s investment account. The customer demanded $3,000,000.00 in damages as a result of the excessive trading, misrepresentation, and unsuitable recommendations. The complaint is pending a resolution.
Moreover, FINRA BrokerCheck disclosed that six other customers have filed complaints about Valenzuela’s alleged sales practice violations. Those customers have maintained investment accounts at M.L. Stern & Co., LLC, Hilltop Securities Inc. and Southwest Securities, Inc. Here is a summary of the disputes:
1) On March 16, 1999, an M.L. Stern & Co., LLC customer filed an arbitration about Valenzuela’s conduct. (NASD Arbitration #99-01320). The customer claimed breach of fiduciary duty, negligent misrepresentation and violation of NASD Rules. The customer’s arbitration alleged that Valenzuela failed to accurately represent information about the customer’s investments in corporate bonds when they were purchased. The arbitration was resolved on February 21, 2000 for $20,700.00.
2) A customer brought a complaint on February 14, 2011, alleging that Valenzuela failed to inform the customer about information relating to the customer’s municipal bonds. The customer sought for the 525 bonds purchased to be cancelled as a result of those omissions. The customer alleged $17,5000.00 in damages as a result of Valenzuela’s misconduct. The complaint was closed on March 18, 2011.
3) On May 11, 2011, a Southwest Securities, Inc. customer complained about Valenzuela making unauthorized sales of the customer’s municipal debt investments. The customer demanded $133,378.47 in damages as a result of Valenzuela’s unapproved bond liquidations. Southwest Securities, Inc. closed the complaint on May 19, 2011 without a resolution.
4) A customer of M.L. Stern & Co., LLC filed an arbitration on February 15, 2013. (FINRA Arbitration #: 13-00362). The customer’s allegations against Valenzuela included unsuitable recommendations, misrepresentation, and breach of fiduciary duty. Apparently, Valenzuela’s misconduct concerned recommendations for the customer to invest in municipal securities. The customer alleged $59,931.00 in damages as result of the sales practice violations. M.L. Stern & Co., LLC ultimately settled those allegations by agreeing to pay the customer $32,000.00 in damages.
5) An arbitration was filed by a Hilltop Securities Inc. customer on November 16, 2017. The customer’s Statement of Claim alleged unsuitable margin use; unsuitable investment recommendations; elder abuse; financial exploitation; and excessive mark-ups and mark-downs. Apparently, the customer’s allegations relate to Valenzuela’s unit investment trust trading. The customer further accused Valenzuela of failing to enable the customer to receive breakpoint discounts on the unit investment trust purchases. In sum, the customer alleged $9,500,000.00 in damages as a result of Valenzuela’s alleged sales practices violations. The customer’s arbitration is currently pending a resolution.
6) A Hilltop Securities Inc. customer filed a complaint on August 28, 2017 regarding Valenzuela’s sales practices. The customer specifically alleged that Valenzuela misrepresented unit investment trusts that were held in the customer’s account. The customer claimed that Valenzuela did not disclose all of risks and fees of the unit investment trusts. The damages alleged by the customer are estimated to exceed $5,000.00s. That complaint is pending.

Lars Soreide Highest Ethical Standard Award 2018
Lars Soreide Highest Ethical Standard Award 2018

Investors who have incurred losses from Walter Roland Valenzuela are encouraged to contact Soreide Law Group at (888) 760-6552 for a free consultation. Our firm has recovered millions of dollars for investors who have suffered losses due to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs.

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