FINRA Fined and Suspended California Broker For Borrowing Money From Elderly Client

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

Frank John Tarazon (CRD #3272807, Registered Representative, Oxnard, California)

was fined $20,000 and suspended from association with any FINRA member in any capacity for six months. Without admitting or denying the findings, Tarazon consented to the described sanctions and to the entry of findings that he borrowed a total of $368,692 from an elderly customer contrary to his member firm’s policies and procedures, which prohibited registered representatives from borrowing money from customers, except from immediate family members. The findings stated that Tarazon never sought permission to borrow funds from the customer and the firm was unaware of the customer’s loans to Tarazon.

FINRA's findings also stated that Tarazon maintained or had a financial interest in brokerage accounts held outside his member firm without providing the firm with written notice of these accounts or receiving the firm’s prior approval to open or hold an interest in the accounts. The findings also included that Tarazon was designated as a successor trustee to the customer’s trust and as a beneficiary to that trust. Tarazon’s firm’s policies and procedures prohibited registered representatives from being named as a beneficiary on an account or from acting in the capacity of a guardianship, conservator, trustee, power of attorney, or any similar type of relationship on behalf of any unrelated person without first obtaining the firm’s written approval. This prohibition included acting as a beneficiary of a trust or estate.

Additionally, FINRA found that during his firm’s annual inspections, Tarazon falsely stated to his supervisor that he did not have any undisclosed outside brokerage accounts. Tarazon also falsely stated on annual business questionnaires that he had not been named as a trustee or beneficiary of a customer’s trust.
The suspension is in effect from April 15, 2013, through October 14, 2013.
(FINRA Case #2011027681401)

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

ING FINANCIAL PARTNERS, INC.
CRD# 2882
OXNARD, CA
02/2002 - 05/2011

NEW ENGLAND SECURITIES
CRD# 615
NEW YORK, NY
10/1999 - 02/2002

This ends the information obtained from FINRA’s website.

The Soreide Law Group represents clients nationwide before FINRA. If you have sustained investment losses due to your stock broker/financial advisor’s recommendations, call for a free consultation with an attorney on how to potentially recover those losses: 888-760-6552.