Financial Industry Regulatory Authority (FINRA) BrokerCheck reveals disclosures about securities broker Richard Mireles (CRD#: 5288651, San Diego, California). Mireles has worked for Independent Financial Group LLC since May 2010.
Recent disclosures indicate that FINRA has sanctioned Mireles, suspending him from principal and supervisory roles due to failure to address excessive trading red flags raised by subordinates.
Regulatory Action and Sanctions Over Alleged Unsuitable Trading
On September 13, 2024, FINRA issued a regulatory action (Letter of Acceptance, Waiver Consent, AWC No. 2023080627902) against Richard Mireles for failing to reasonably respond to indications of excessive trading by a registered representative under his supervision.
According to FINRA, Mireles supervised lower-level supervisors responsible for reviewing trade alerts, including a "high-principal solicited trade" alert. Repeatedly, certain trades flagged under this alert were brought to Mireles' attention due to concerns about excessive trading activity. Instead of conducting a broader review of the trading patterns, he directed supervisors to evaluate individual trades in isolation, failing to detect and address excessive trading patterns across client accounts.
Excessive Trading By Richard Mireles Leads to Losses
Between July 2020 and December 2022, this misconduct led to five clients paying more than $2.2 million in trading costs and incurring realized losses totaling approximately $2.2 million. One affected client, a 77-year-old retiree with a capital preservation investment objective, experienced an annualized cost-to-equity ratio of 20.3%, resulting in trading costs of more than $490,000 and losses surpassing $550,000. Another affected client, an 88-year-old retiree, had an account with an annualized cost-to-equity ratio of 23.4%, leading to over $650,000 in trading costs and losses exceeding $560,000.
As a result of these findings, FINRA imposed a $5,000 fine for supervisory failures and a four-month suspension from acting in any principal capacity, effective from October 21, 2024, to February 20, 2025.
Looking for more information about Richard Mireles? If so, reach out to Soreide Law Group online or at (888) 760-6552 to speak with a securities attorney. The team at Soreide Law Group works on a contingency basis, advances all costs, and assists clients throughout the United States with recovering losses from sales practice misconduct. Mireles and the firms he worked for deny accusations of sales practice violations.
