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- Morgan Stanley allowed the ex-broker to resign after a client claimed to have used a customer line of credit for himself.
- FINRA ruled him out after he refused to cooperate with his investigation into his dismissal from the company.
- Through his lawyer, the broker denied the client’s request.
The Financial Industry Regulatory Authority banned a former Morgan Stanley broker from using more than $ 61,000 of a customer line of credit for personal use, then refused to cooperate with the industry’s self-regulator investigation into its actions, according to FINRA.
Without admitting or denying FINRA’s conclusions, Jesus rodriguez signed a Letter of acceptance, waiver and consent from FINRA on November 23, in which he consented to a settlement ban on associating with FINRA members at all levels. FINRA signed the letter on Monday.
Rodriguez first registered with FINRA in 2005. In June 2009, he registered through Morgan Stanley as a general securities representative, according to FINRA.
On September 3, Morgan Stanley filed a Form U5 termination notice in which it disclosed that Rodriguez had resigned a month earlier as a result of “[a]legal statements regarding the use by a registered representative of the customer line of credit for personal benefit.
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According to his report On FINRA’s BrokerCheck website, a lawsuit was filed against him on July 15 in which clients alleged that the broker “had used his line of credit for his personal benefit.” The lawsuit sought damages of $ 61,431 and is still pending, according to the BrokerCheck report.
Additional litigation followed
After his resignation from Morgan Stanley, five other customer disputes were filed against him, all of which are still pending. First, on August 23, a client alleged that funds had been misappropriated from her account in March 2020 and she requested $ 28,000. On the same day, another client alleged that funds had been withdrawn from his account without his knowledge.