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Jorge Netto Faces FINRA Allegations of Undisclosed Outside Business Activities

Oct 24, 2021 Outside Business Activities

Jorge Netto (CRD #: 2432661), a registered broker with Boreal Capital Securities, LLC, is the subject of a FINRA complaint following allegations of undisclosed business activities according to his BrokerCheck record, accessed on October 20, 2021. 

FINRA Complaint

According to the FINRA complaint, Jorge Netto and three other individuals allegedly formed an LLC in Florida to purchase a warehouse in which marijuana could be grown and stored. During that time, the written supervisory procedures of Mora WM Securities (currently known as Boreal Capital Securities) required all registered representatives to obtain prior written authorization before engaging in outside business activities.  To generate funds for the loan, Jorge Netto allegedly advised an investor to liquidate all of their securities positions held in their customer account. Jorge Netto allegedly obtained $119,000 in compensation as a fee for facilitating the purchase of the property. The issue is still pending.

See the full complaint here.

FINRA Rules 3270 and 2010

Under FINRA Rule 3270, registered representatives must seek approval from their brokerage firm before participating in an outside business. A violation of FINRA Rule 3270 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”

Jorge Netto Other Outside Business Activities

Jorge Netto has the following businesses listed in the Outside Business Activity section of his detailed BrokerCheck report. If you have invested in any of Jorge Netto’s outside businesses, please contact us today. 

  • Sunset Lake Holdings
  • Sounet Holdings  

Jorge Netto Background Information

Jorge Netto has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination
  • Series 24 - General Securities Principal Examination

Jorge Netto is a registered broker in 6 states.

Other than Boreal Capital Securities,  Jorge Netto has worked with the following firms:

  • Northeast Securities, INC. (CRD#:25996)
  • Colony Park Financial Services LLC. (CRD#:41534)
  • Atlas One Financial Group, LLC (CRD#:124057)
  • G. Edwards & Sons, INC. (CRD#:4)
  • First Union Securities, INC. (CRD#:19616)
  • First Union Brokerage Services, INC. (CRD#:8112))

Kurta Law Can Help

If you have suffered losses after working with Jorge Netto, please contact us today 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 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.