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Ramiro Colon Suspended by FINRA

Ramiro Colon (CRD #: 1868710), a broker registered with ACP Securities, has been suspended by FINRA, according to his BrokerCheck record, accessed on July 23, 2022. Read on to learn more about Ramiro Colon’s conduct as a broker.

Suspension by FINRA

On June 14, 2022, Ramiro Colon consented to the entry of findings that he allegedly used an unapproved third-party communication app to discuss securities-related business with a client while employed by UBS Financial Services.

According to a Letter of Acceptance, Waiver & Consent (AWC), from September 2018 through April 2020, Ramiro Colon allegedly exchanged hundreds of securities-related communications with a client through WhatsApp, in violation of firm policies regarding business communications.

The AWC concludes that these alleged communications violated FINRA Rules 4511 and 2010.

FINRA Rules 4511 and 2010

FINRA Rule 4511 requires firms to maintain accurate books and records.

Violations of FINRA Rule 4511 also violate FINRA Rule 2010, which requires brokers to uphold high standards of commercial honor and just and equitable principles of trade.

Sanctions

Ramiro Colon consented to the following sanctions:

  • $5,000 fine
  • 30-calendar day suspension

Ramiro Colon’s suspension began on July 5, 2022, and will end on August 3, 2022.

You can read the AWC filing here.

Denied Dispute

In a dispute filed on May 5, 2020, an investor alleged that Ramiro Colon failed to inform the client that the investment would take 10 days to two weeks to liquidate, leading to an increase in the investment’s risk. The client alleges that the investment was made in October 2018 and that the attempted liquidation between March 9 and March 27, 2020. This dispute was denied by the firm.

However, investors should know that firms can deny disputes without an external review, and investors can still pursue FINRA arbitration after a denial.

FINRA Rule 2020

The misrepresentation or omission of material facts related to investments violates FINRA Rule 2020, which bans the use of manipulation, deception, and other fraudulent tactics to influence the purchase or sale of securities.

Disputes Alleging Failure to Supervise

From 2014-2019, Ramiro Colon was the subject of 26 disputes alleging failure to supervise. Two of these disputes, filed on September 22, 2015, and November 24, 2020, are still pending. The rest were settled for approximately $15,000,000. 

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must appoint supervisory personnel with relevant experience or training for their role.

Allegations Involving Closed-End Funds

Four disputes filed in 2019 alleged that Ramiro Colon’s recommendation that investors hold their investments in Puerto Rico closed-end funds was unsuitable for the clients. Two of these disputes further alleged that he failed to supervise. Disputes filed on May 21 and 31, 2019, are currently still pending. The other two disputes were settled for a total of $750,000.

Four disputes, filed from 2016-2018, alleged that Ramiro Colon failed to supervise in relation to their purchases of closed-end funds and Puerto Rico bonds, during a collective time frame of 2007 to 2018. These disputes were settled for a total of $552,500.

Two disputes, filed in 2015 and 2016, alleged that Ramiro Colon’s recommendations of Puerto Rico closed-end bond funds were unsuitable and that he overconcentrated and misrepresented these investments. Investors further alleged that he, as Complex Director, failed to supervise other brokers. These disputes were settled for a collective $465,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles contain information such as investors’ tax status, risk tolerance, and investment goals.

Brokers must also recommend suitable investment strategies. Over-concentration is often unsuitable for investors due to the high level of risk involved.

Investors who rely on brokers for recommendations may be able to recoup their losses by pursuing FINRA arbitration.

Arbitration Agreement

On June 27, 2018, Ramiro Colon was named in a complaint filed against UBS Financial Services and UBS Financial Services Incorporated of Puerto Rico which involved allegations of fraud, deceit, recklessness, and negligence in relation to purchases of Puerto Rico bonds and closed-end bond funds.

An arbitration agreement entered on November 25, 2019, obligated Ramiro Colon to pay $295,000 in damages.

SEC Action

On September 19, 2015, the Securities and Exchange Commission took action against Ramiro Colon concerning his alleged failure to reasonably supervise in his role as branch office manager of the Guaynabo Complex of offices of UBS Financial Services Incorporated of Puerto Rico from 2011 to 2013.

The SEC alleges that, in 2011, Ramiro Colon was alerted to the possibility that an individual was engaged in a scheme to use proceeds from lines of credit to purchase closed-end funds. Ramiro Colon allegedly reviewed the client’s profile, accepted the individual’s explanation, and did not follow up with the client.

Ramiro Colon also allegedly knew that the individual and the Guaynabo branch’s performance regarding line of credit originations allegedly exceeded that of other brokers and Puerto Rico branches of UBS Financial Services.

The SEC alleged that Ramiro Colon failed to reasonably supervise this individual as required by Section 15(b)(4)(E) of the Securities Exchange Act of 1934.

Section 15(b)(4)(E) of the Securities Exchange Act of 1934

The relevant portions of Section 15(b)(4)(E) of the Securities Exchange Act of 1934 require a 12-month suspension (or other penalty) for willful failure to supervise.

Sanctions

Ramiro Colon consented to the following sanctions:

  • $25,000 fine
  • 12-month suspension
  • Agreement to cooperate with the SEC in connection with any judicial or administrative proceedings or investigations

Ramiro Colon was suspended from October 12, 2015, to October 11, 2016.

Background Information

Ramiro Colon 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 3 – National Commodity Futures Examination
  • Series 7 – General Securities Representative Examination
  • Series 10 – General Securities Sales Supervisor – General Module Examination
  • Series 9 – General Securities Sales Supervisor – Options Module Examination
  • Series 53 – Municipal Securities Principal Examination
  • Series 24 – General Securities Principal Examination

Ramiro Colon is a registered broker in Florida and Puerto Rico.

He has also worked for the following firms:

  • UBS Financial Services (CRD#:8174)
  • UBS Financial Services Incorporated of Puerto Rico (CRD#:13042)
  • R-G Investments Corporation (CRD#:113293)
  • Popular Securities (CRD#:8096)
  • Marketing One Securities (CRD#:16611)
  • First Chicago Capital Markets (CRD#:23065)
  • Citicorp Financial Services (CRD#:17053)

Kurta Law Can Help

If you worked with Ramiro Colon 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. 

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