Miami Broker Fined, Suspended for FINRA Violations
Ariel A. Rivero (CRD #4236679) is a previously registered investment adviser (RIA) and securities broker. From May of 2016 to January of 2022, Mr. Rivero was a representative of Jefferies LLC in Miami. Subsequently, he was associated with Insigneo Securities LLC in Coral Gables. In May of 2024, the Financial Industry Regulatory Authority (FINRA) fined and suspended this broker for securities industry violations. Here, our Miami FINRA arbitration attorney provides an in-depth overview of the allegations raised and sanctions imposed in this case.
Suspended Broker: Ariel A. Rivero Formerly of Jefferies LLC and Insigneo Securities
The allegations raised in this case stem to a time when Ariel A. Rivero was a representative of Jefferies LLC in Miami, Floria. According to findings made by FINRA, Mr. Rivero used improper channels of communication to securities-related business with clients. As a consequence, his brokerage firm maintained incomplete records. Notably, FINRA emphasized that this broker falsely claimed he did not use such unapproved communication methods.
Further, FINRA determined that Mr. Rivero borrowed $500,000 from a client without proper notification or approval from his firm. He tried to settle a conflict over that loan without properly notifying his firm. Without admitting to or denying any of the specific allegations raised, former Jefferies LLC broker Ariel A. Rivero consented to the agency’s proposed penalties, including a $10,000 fine and a six month suspension.
An Overview of FINRA Regulations
As part of the enforcement action taken in this case, FINRA cited three different securities industry regulations. Here is an overview of the relevant regulations involving allegations against the Miami financial advisor:
- FINRA Rule 2010: FINRA Rule 2010 requires members to observe high standards of commercial honor and just and equitable principles of trade. The rule mandates that all actions by members—whether directly related to securities activities or otherwise—must reflect ethical conduct and integrity. It serves as a broad, overarching standard.
- FINRA Rule 3240: FINRA Rule 3240 addresses the conditions under which registered persons can borrow money from or lend money to their clients. It establishes specific circumstances and approvals required to engage in such financial arrangements to prevent conflicts of interest and protect clients.
- FINRA Rule 4511: FINRA Rule 4511 requires members to maintain accurate books and records as prescribed by FINRA rules, the Exchange Act, and all other applicable Exchange Act rules. The rule emphasizes the importance of keeping detailed and precise records. A broker that violates record-keeping measures causes their firm to breach Rule 4511.
Contact Our Miami, FL FINRA Arbitration Lawyer Today
At Carlson & Associates, P.A., our Miami securities fraud and investment fraud attorney puts the rights of clients first. If you suffered investment losses because a broker or brokerage firm engaged in any type of FINRA rules violations, your case should be reviewed by an experienced lawyer. Contact us today for a completely confidential, no obligation initial appointment. With an office in Miami, our firm is well-positioned to represent investors in Florida and beyond.
Source:
brokercheck.finra.org/individual/summary/4236679
