FRANCISCO JOSE RIVERA FERNANDEZ is currently employed as a Broker and/or Investment Adviser at PARITER SECURITIES, LLC located at 243 CARRETERA #2, GUAYNABO, PR, 00966.
FRANCISCO JOSE RIVERA FERNANDEZ has worked at PARITER SECURITIES, LLC since October 21, 2008
Disclosure History
FRANCISCO JOSE RIVERA FERNANDEZ has 2 Disclosure Event(s).
Date: September 14, 2006 Category: Customer Dispute Allegations: ON MARCH, 2006, MY BROKER SUGGESTED ME TO TRANSFER MY ACCOUNT FROM AN OPTIONS FUND, WHERE MY MONEY WAS INVESTED, TO A PORFOLIO THAT CONSISTED OF EQUITY AND FIXED INCOME FUNDS. ALONG WITH THE THE TRANSFER(WHICH INCLUDED MARGIN BALANCES), I AUTHORIZED MY BROKER IN WRITING TO PAY OFF EXACTLY ONE THIRD OF THE OUTSTANDING MARGIN BALANCE IN MY ACCOUNT AS OF THE END OF MARCH 2006. THE TOTAL OUTSTANDING MARGIN BALANCE AS OF MARCH 31, 2006 WAS EXACTLY $282,313.48 AND ONE THIRD OF THAT AMOUNT WAS $94,104.49. INSTEAD, WITHOUT MY PERMISSION, MY BROKER DECIDED TO PAYOFF $243,149.64 WHICH REPRESENTED APPROXIMATELY 86% OF THE TOTAL DEBT, OR SPECIFICALLY, $149,045.15 IN EXCESS OF THE AMOUNT I AUTHORIZED TO PAYOFF. TODAY, THE BROKER ADMITTED OVER THE PHONE THAT HE PAID OFF MOST OF THE MARGININ ORDER TO AVOID THE HIGH INTEREST PAYMENTS ON THAT MARGIN. HOWEVER, THAT MONEY COULD HAVE BEEN INVESTED SOMEWHERE ELSE TO ACHIEVE THE NECESSARY RETURNS THAT WOULD HAVE OFFSET THE EFFECT OF THE INCREASING INTEREST RATES. THIS WAS CLEARLY A BREACH OF CONTRACT. Broker Comment: I DISCUSSED THE RECOMMENDATIONS THAT [THIRD PARTY] WOULD BE DISCUSSING WITH [CUSTOMER]. THE RECOMMENDATIONS TO TALK TO ABOUT THE AFFECT ON HIS TAXABLE INCOME WERE GIVEN TO [THIRD PARTY] AND HE TRANSMITTED TO [CUSTOMER]. ON JULY 31,2006, WE CALLED [CUSTOMER] TO FURTHER DISCUSS WHAT HE HAD ALREADY SPOKE WITH [THIRD PARTY], REGARDING THE AMOUNTS REDUCED ON HIS MARGIN DEBT. WE EXPLAINED TO HIM AGAIN THAT IN ORDER FOR US TO TRANSFER THE MONEY INVESTED IN THE TAXABLE FUND TO THE THE TAX FREE FUND WE HAD TO CANCEL THE MARGIN DEBT CARRIED ON IT. AFTER THAT TRANSACTION AND DUE TO THE FACT THAT THE STATEMENTS WERE SENT TO HIS OLD ADDRESS ON RECORD(HIS GRANDPARENTS HOME)IT WAS UNTIL THIS DATE THAT HE FOUND OUT THAT THE MARGIN BALANCE WAS REDUCED. WE DID NOT HAVE ANY INSTRUCTIONS TO INVEST ON MARGIN AFTER THE ABOVE MENTIONED TRANSACTION. IN OTHER HAND WE DO NOT HAVE ANY PRODUCT THAT YIELDS WHAT MARGIN INTEREST WAS COSTING OR MORE. WE OFFERED [CUSTOMER] TO REVERSE THE TRANSACTIONS, BUT NOT UNTIL FIRST CALCULATION WAS MADE WE FOUND OUT THAT [CUSTOMER] WOULD HAVE LOST APPROXIMATELY $15,000.00 IF THE TRANSACTION WAS REVERSED, WE RECOMMENDED STAYING THE WAY HE WAS AT THIS TIEM.AS PER NASD LETTER FEBRUARY 16,2007, THE NASD HAS CLOSED THE INVESTIGATION OF THIS MATTER. BASED ON THE ASSESSMENT OF INFORMATION RECEIVED.
Date: February 20, 2004 Category: Customer Dispute Allegations: THAT [CUSTOMER] THOUGHT SHE WAS BUYING SAFE INVESTMENTS, (STOCKS) THAT SHE RECEIVED FORMS THAT WERE ALREADY FILLED OUT OR BLANK AND SHE DIDN'T RECEIVE ANY EXPLANATIONS AS TO IT'S CONTENTS. THAT SHE SAW CHECKS FROM OTHER CLIENTS WHO HAD INVESTED. THAT I INVESTED HER MONEY IN THE STOCK MARKET WITHOUT HER AUTHORIZATION. THAT SHE WITHDREW FROM THE ACCOUNT FROM SEVEN TO TEN THOUSAND DOLLARS ON A MONTHLY BASIS BECAUSE THIS WAS THE AMOUNT THAT I ALLEGEDLY TOLD HER SHE COULD WITHDRAW. THAT SHE REALIZED THAT SHE WAS ONMARGIN WHEN I TOLD HER NOT TO SPEND SO MUCH MONEY. THAT WHEN I OFFERED TO HELP HER FINANCIALLY AS I HAD DONE IN THE PAST, THAT SHE UNDERSTOOD I WAS ACKNOWLEDGING SOME KIND OF WRONG DOING. Damage Amount Requested: $550,000.00 Settlement Amount: $110,000.00 Broker Comment: [CUSTOMER] NEVER SIGNED BLANK FORMS, APPLICATIONS WERE ALL FILLED OUT BY ME PERSONALLY. OTHER FORMS LIKE PARTIAL SURRENDERS AND SYSTEMATIC WITHDRAWLS WERE SENT TO HER PREFILLED WITH NECESSARY INFORMATION SUCH AS POLICY, CONTRACT OR ACCOUNT NUMBER, NAME, ADDRESS AND AMOUNTS, SO THAT SHE COULD SIGN AND RETURN THEM. SHE MADE OVER 45 WITHDRAWALS TO HER ACCOUNT. SHE WAS PRESENTED WITH HISTORICAL INFORMATION OF HOW THE STOCK MARKET WORKED IN VARIOUS OCCASIONS DURING OUR VISITS. I SHOWED HER A RESTRICTIVE ENDORSEMENT (DEPOSIT ONLY) ONLY BECAUSE SHE WAS AFRAID OF GIVING ME A CHECK MADE OUT TO HER NAME AND ENDORSED BY HER. NO OTHER DOCUMENTS FROM MY CLIENTS WERE SHOWN TO HER. THE MONEY SHE ALLEGEDES I INVESTED WITHOUT HER AUTHORIZATION HAD BEEN INVESTED SINCE AUGUST OF 1999 WITH HER APPROVAL. I NEVER GUARANTEED HER A MONTHLY INCOME IN FACT ALL OF THESE INVESTMENTS WERE SUPPOSED TO BE A LONG TERM INVESTMENT FOR HER RETIREMENT (10 YEARS OR MORE). SHE MADE WITHDRAWALS TO THE ACCOUNT FOR APROXIMATELY $235,000.00 IN A PERIOD OF 15 MONTHS, OF AN INITIAL INVESTMENT OF $338,000.00. SHE ADMITTED TO ME THAT SHE DID NOT WANT A DEBIT CARD BECAUSE SHE HAD NO CONTROL WITH IT AND ULTIMATELY HAD NO CONTROL OVER THE CHECKS. I OFFERED TO HELP HER FINANCIALLY AS I HAD DONE IN THE PAST WITH A LOAN RANGING ANYWHERE FROM $75,000 TO $100,000 WHEN SHE SOBBED ABOUT LOSING HER BUSINESS AND HOME DUE TO HER ECONOMICAL SITUATION, MONEY SHE COULD RETURN TO ME ONCE SHE SOLD HER BUSINESS. I ALSO OFFERED HER A COMPLAINT FORM IF SHE THOUGHT I HAD DONE SOMETHING WRONG. SEEING THE SERIOUSNESS OF THIS CASE I DISCUSSED IT WITH MY MANAGING DIRECTOR [BROKER DEALER PRESIDENT]
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