Ariel Rivero Facing a Six-Month FINRA Suspension
Ariel Rivero (CRD #: 4236679) has been suspended by FINRA. This is according to his BrokerCheck record, accessed on June 28, 2024. Keep reading if you have questions regarding his alleged conduct.
Regulatory Action
On May 13, 2024, Ariel Rivero entered into an Acceptance, Waiver, and Consent agreement (AWC) in which he consented to the findings that he used WhatsApp Messenger to communication with customers regarding securities-related business. This allegedly caused his member firm to maintain incomplete books and records.
He allegedly had the following communications with customers via WhatsApp:
- Obtaining authorization to buy and sell stocks.
- Discussions about account performance.
- Discussions related to a customer complaint and a customer loan.
Ariel Rivero allegedly borrowed $500,000 from a firm customer without providing prior written notice or obtaining written approval from the firm.
The firm also alleges that Ariel Rivero attempted to settle a complaint with a customer who complained of losses from investment in non-traditional Exchange-Traded Funds. The broker allegedly offered, via WhatsApp, to reimburse the customer over $300,000 in monthly installments of $10,000 to resolve the complaint. Allegedly, he did not disclose the customer’s complaint to his firm, nor his attempt to settle with the customer. He allegedly did not reach a settlement with the customer and allegedly did not make any payments to him.
Books and Records
FINRA Rule 4511 requires firms to keep accurate and up-to-date books and records.
FINRA Rule 3240
FINRA Rule 3240 describes the circumstances under which brokers may borrow from or lend to clients.
Terms of the AWC
As part of the terms of the AWC, Ariel Rivero consented to a $15,000 fine and a six-month suspension. You can read a copy of the AWC here.
Investor Disputes
On April 5, 2022, an investor alleged that Ariel Rivero recommended unsuitable outside investments. He also allegedly misrepresented the risks related to these investments. The dispute settled for $150,000.
On September 10, 2021, an investor alleged Ariel Rivero recommended unsuitable and risky investments. He also allegedly made unauthorized use of client funds. The dispute was settled for $260,000.
What is an Unsuitable Investment?
FINRA Rule 2111 requires brokers to evaluate whether an investment strategy fits their investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:
- Age
- Risk tolerance
- Time horizon (i.e., how long the investor plans to hold the investment)
- Investing experience
- Tax status
- Financial goals
Investors who rely on brokers for recommendations may be able to recover losses from unsuitable investment recommendations by pursuing FINRA arbitration.
Misrepresentation
FINRA Rule 2020 forbids the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.
Background Information
Ariel Rivero has passed the following exams:
- Series 66 Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
During his 23 years of experience, he has registered with five firms:
- Insigneo Securities (CRD #: 29249)
- Jefferies (CRD #: 2347)
- Oppenheimer & Co. (CRD #: 249)
- Morgan Stanley (CRD #: 149777)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #: 7691)
Kurta Law Can Help
If you have worked with Ariel Rivero and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email info@kurtalawfirm.com for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.
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