FINRA Suspends Victor Morales for Alleged Undisclosed OBA
Victor Morales (CRD #: 6552148), a broker formerly registered with Wells Fargo Clearing Services, was recently suspended by FINRA, according to his BrokerCheck record, accessed on October 7, 2022. Read on if you want to know more about his conduct as a broker.
FINRA Suspension
On June 15, 2022, Victor Morales consented to the entry of findings that he allegedly engaged in an undisclosed outside business activity without providing advance notice to his firm, Wells Fargo Clearing Services.
A Letter of Acceptance, Waiver & Consent (AWC) alleged that Victor Morales owned and operated a towing and transportation business as its sole proprietor from November 2019 until October 2020, while working for Wells Fargo.
The AWC alleged that Victor Morales failed to provide notice of any kind to Wells Fargo concerning his participation in this business activity. Further, the AWC alleged that he falsely claimed in annual compliance questionnaires in 2019 and 2020 that he had not engaged in any unapproved outside business activities.
The AWC also alleged that on July 8, 2020, Victor Morales failed to carefully review his application for an Economic Injury Disaster Loan (EIDL) from the Small Business Administration (SBA) before submitting it. He allegedly negligently overstated his business’ gross revenue from 2019-2020. The SBA allegedly approved his loan on the basis of this negligent misrepresentation, providing him with a $16,500 loan and a $10,000 advance. He allegedly repaid the loan and advance in full in August 2021.
The AWC concludes that these allegations constituted violations of FINRA Rules 3270 and 2010.
FINRA Rules 3270 and 2010
FINRA Rule 3270 requires brokers to disclose any business activities they engage in outside their firm, as well as any compensation they expect to receive from these activities.
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Victor Morales consented to the following sanctions:
- $5,000 fine
- Three-month suspension
His suspension began on June 21, 2022, and ended on September 20, 2022.
You can read the full AWC here.
Other business activities
Victor Morales’ detailed BrokerCheck report does not currently list any outside business activities.
Termination from Wells Fargo Clearing Services
On October 21, 2020, Victor Morales was fired from Wells Fargo Clearing Services allegedly following an investigation into his receipt of SBA business assistance payments which determined that he did not meet the requirements of the SBA EIDL program.
Background Information
Victor Morales 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 6 – Investment Company Products/Variable Contracts Representative Examination
He previously worked for Wells Fargo Clearing Services (CRD#:19616).
Kurta Law Can Help
If you worked with Victor Morales 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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