Felipe Henao Vargas is the Subject of a Regulatory Action Following Allegations of Short Selling
Felipe Henao Vargas (CRD #: 5140431), a previously registered broker with Insigneo Securities, is the subject of a regulatory action. This is according to his BrokerCheck record, accessed on March 4, 2024. Details concerning the regulatory action are provided below.
Regulatory Action
On December 19, 2023, Felipe Henao Vargas entered into an Acceptance, Waiver, and Consent Agreement (AWC), in which he consented to the findings that he exercised discretion without written authorization in a customer’s account. The AWC further alleged that he initiated a short position in a volatile exchange-traded note.
According to AWC, Felipe Henao Varagas aggravated his misconduct by using an unapproved communication channel to exchange messages concerning the trades with a family member of the customer after the fact.
FINRA Rule 3260
Unauthorized trading violates FINRA Rule 3260, which limits brokers to exercising their trading discretion in pre-approved discretionary accounts.
Terms of the AWC
Felipe Henao Vargas consented to a $7,500 fine and a 45-day suspension.
You can see a copy of the AWC here.
Investor Dispute
On September 8, 2020, an investor alleged that Felipe Henao Vargas placed a short trade for an exchange-traded note (BARCLAYS BK VIX SHORT TERM FUTURES ETN). The investor allegedly complained regarding the management and overall performance of the account. He also allegedly stated that his account had suffered significant losses and that he had experienced a lack of communication from the broker.
The investor sought $1.3 million and was settled for $1,075,000.
Background Information
Felipe Henao Vargas has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- Series 7TO General Securities Representative Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
Felipe Henao Vargas has registered with the following firms:
- Insigneo Securities (CRD #: 29249)
- Bolton Global Capital (CRD #: 15650)
- Merrill Lynch, Pierce, Fenner & Smith (CRD #: 7691)
Kurta Law Can Help
If you have worked with Felipe Henao Vargas and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or 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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