Pamela Espinosa Allegedly Engaged in Cross-Trading

Pamela Espinosa (CRD #: 5865661), a broker registered with Kestra Investment Services, allegedly engaged in cross-trading, according to her BrokerCheck record, accessed on March 22, 2023. Investors may have also worked with her through Kestra Advisory Services or Davis Advisory Group. Read on if you have questions about her alleged conduct as a broker.

Investor Dispute

On January 25, 2023, an investor alleged that Pamela Espinosa made unsuitable recommendations of private investments for the purpose of generating high commissions. The client further alleges that she engaged in cross-trading.

The client seeks $1 million in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must take into account the information contained in an investor’s profile, such as their tax status, age, and risk tolerance.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

What is cross-trading?

Cross-trading occurs when a broker executes a buy and sell order for the same security at the same time, but doesn’t report the transactions to the exchange. This can qualify as market manipulation if the broker is using cross-trades to artificially inflate the trading activity of the security.

Background Information

Pamela Espinosa has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Pamela Espinosa is a registered broker in 19 states and the District of Columbia. She is also a registered investment adviser in New Mexico and Texas.

She has also worked for SII Investments (CRD#:2225).

Kurta Law Can Help

If you worked with Pamela Espinosa and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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.