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Joao Bastos Allegedly Purchased Structured Notes Without Client Authorization

Oct 31, 2022 Misrepresentation

Joao Bastos (CRD #: 4628555), a broker registered with Citigroup Global Markets, allegedly made unauthorized purchases, according to his BrokerCheck record, accessed on October 16, 2022. If you have questions about his conduct as a broker, read on.

Investor Dispute

On July 6, 2022, an investor alleged that Joao Bastos purchased structured notes for the client without authorization and without providing any product information between June 2020 and the date of filing. Structured notes are illiquid products that should be held until the maturity date to avoid suffering a loss. The client allegedly also told Joao Bastos that he did not want to be in the market for an indefinite period of time.

The client seeks the return of his invested principal in this pending dispute.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to exercising their trading discretion in discretionary accounts. These accounts must be approved for discretionary trading by both the investor and the firm.

FINRA Rule 2020

FINRA Rule 2020 forbids the use of deceptive, manipulative, or otherwise fraudulent tactics to influence the purchase and sale of securities. Omitting information about an investment’s limitations, requirements, or other features violates this rule.

What are structured notes?

Structured notes (also known as structured products) combine a bond and a derivative. The returns investors receive from a structured note depend on the performance of the derivative component—which can include swaps, futures, or options. 

The complexity and various risks associated with structured notes makes them unsuitable for many investors.

Background Information

Joao Bastos has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination

Joao Bastos is a registered broker in seven states and a registered investment adviser in Florida.

He has also worked for the following firms:

  • LPL Financial (CRD#:6413)
  • HSBC Securities (USA) (CRD#:19585)
  • Wells Fargo Advisors (CRD#:19616)
  • UBS Financial Services (CRD#:8174)
  • UBS International (CRD#:107726)
  • J.P. Morgan Securities (CRD#:18718)
  • Chase Investment Services (CRD#:25574)
  • MetLife Securities (CRD#:14251)
  • Metropolitan Life Insurance Company (CRD#:4095)

Kurta Law Can Help

If you worked with Joao Bastos and you have concerns about your investments, please contact us today at 877-600-0098 or 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 and 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.