Elba Nogueras Facing a FINRA Suspension Following an Alleged Violation of Regulation Best Interest
Elba Nogueras (CRD #: 4459340) has been suspended by FINRA, according to her BrokerCheck record, accessed on October 30, 2023. Keep reading if you have questions about her alleged conduct.
On September 18, 2023, Elba Nogueras entered into an Acceptance, Waiver, and Consent agreement in which she consented to the sanctions and the entry of findings that she willfully violated the Care Obligation of Regulation Best Interest by recommending her 52-year-old customer invest in an illiquid, non-traded REIT.
This REIT allegedly came with a high degree of risk that could have resulted in a complete loss of principal. The AWC alleges that, based on Elba Nogueras’s suggestion, the customer invested $81,000, which represented 81% of the customer’s liquid net worth. This recommendation allegedly resulted in a commission of $5,670 for the broker.
The investor allegedly had a moderate risk tolerance and limited investment experience.
Terms of the AWC
As part of the terms of the AWC, Elba Nogueras consented to a $5,000 fine and a disgorgement payment of $5,670. She also consented to a 4-month suspension.
You can see a copy of the AWC here.
What is Regulation Best Interest?
FINRA Rule 2111 requires brokers to consider the following investor characteristics:
- Risk tolerance
- Time horizon (i.e., how long the investor plans to hold the investment)
- Investing experience
- Tax status
- Financial goals
In addition to limiting their recommendations to investments that suit their investors’ needs, brokerage firms must also uphold a Duty of Care, the Conflict of Interest Obligation, and the Disclosure Obligation. These obligations and duties require brokerage firms to disclose conflicts of interest. Firms must also research the market for investments that could offer similar benefits at a lower cost prior to making a recommendation.
Settled Investor Disputes
There are 15 settled investor disputes on Elba Nogueras’ record. From 2017 to 2020, Elba Nogueras’ collectively settled investor disputes for $329,250. These disputes alleged she recommended unsuitable Puerto Rico closed-end funds and municipal bonds.
Elba Nogueras has passed the following exams:
- Series 66 Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
Elba Nogueras has registered with five firms in 19 years of experience:
- First Southern (CRD #: 282756)
- Kovack Securities (CRD #: 44848)
- UBS Financial Services (CRD #: 8174)
- UBS Financial Services Incorporated (CRD #: 13042)
- R-G Investments Corporation (CRD #: 113293)
Kurta Law Can Help
If you worked with Elba Nogueras and have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want 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.