South Florida Broker Suspended for Negligent Supervision
Jose Luis Leon (CRD#: 1789460) served as a registered broker at BAC Florida Investments from 1988 to 2017. During this time, Mr. Leon was based out of a branch office in Coral Gables, Florida.
On September 19th, 2018, Jose Luis Leon was suspended from the securities industry for six months and fined $10,000 for his failure to adequately supervise and review the trading activities of the brokerage firm former head trader Alejandro Falla (CRD#: 5064828). Mr. Falla has since been expelled from the industry after investigators found serious misconduct.
Here, our Miami investment fraud lawyers review the allegations of negligence raised against former broker Jose Luis Leon. For full information related to this disciplinary proceeding, please refer to FINRA Letter of Acceptance, Waiver and Consent No. 20140412646-03.
Failure to Supervise: Former BAC Florida Investments Broker Jose Luis Leon
Background Information
The relevant time period in this case ran from the summer of 2013 to the summer of 2014. During that time, Jose Luis Leon was responsible for supervising the conduct of the chief trader at BAC Florida Investments: Alejandro Falla. In his position as the head trader, Mr. Falla entered into an agreement with a brokerage firm that stipulated that BAC Florida would charge its customers no more than 15 basis points on fixed income securities transactions. FINRA has since determined that Mr. Falla violated this agreement. He intentionally concealed the true purchase price of certain securities in order to overcharge investors.
Violative Conduct
After an investigation into the actions of BAC Florida Investments and its former head trader Alejandro Falla, FINRA determined that Jose Luis Leon failed to adequately supervise and review his trading activities as was his duty. It was Mr. Leon’s obligation to review Mr. Falla’s transactions for prohibited activities and to ensure that the brokerage firm had adequate written supervisory procedures (WSPs) in place to detect and prevent potential violations. FINRA alleges that Mr. Leon did not carry out these duties. Among other things, he allowed Mr. Falla to review his own trading activities for compliance. In doing so, he violated industry rules and put the customers of his member firm at a serious and avoidable financial risk.
FINRA Sanctions
Without admitting or denying any wrongdoing in this case, former BAC Florida Investments broker Jose Luis Leon accepted and consented to FINRA’s findings as well as its proposed penalties. He has been ordered to pay a $10,000 financial penalty and he will serve a suspension from the industry from October 1st, 2018 until March 31st, 2019.
Get Help From a South Florida Securities Law Attorney Today
At Carlson & Associates, P.A., we advocate for the rights and interests of investors in Miami-Dade County and throughout South Florida. If you lost a large amount of money because your brokerage firm failed to adequately supervise a bad financial advisor, our legal team is here to help. To set up a fully private investor losses consultation, please call us today at 1 (305) 372-9700 or reach out to us online.
Resources:
brokercheck.finra.org/individual/summary/1789460
brokercheck.finra.org/individual/summary/5064828
finra.org/sites/default/files/fda_documents/2014041264603%20Jose%20Luis%20Leon%20CRD%201789460%20AWC%20sl.pdf
