Former New York City General Securities Representative Consents to FINRA Sanctions to Resolve Allegations of Unsuitably Recommending Customer Place 99% of Investment Funds in Energy SectorFriday, June 12, 2020
On June 1, 2020, former general securities representative Hector Ramos consented to sanctions imposed by the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he violated FINRA Rules 2111 and 2010 by making unsuitable recommendations to a customer.
According to the Letter of Acceptance, Waiver and Consent (AWC), Ramos made unsuitable investment recommendations to an unemployed, disabled customer living on a fixed income that was derived from a medical malpractice suit. The customer’s investment account was valued at approximately $114,000 and comprised 75% of her entire net worth. In February 2015, Ramos recommended that the customer invest in four energy securities, a market known for its volatility. Ramos repeatedly recommended that this customer invest in the energy market, and, according to the AWC, even recommended that she increase her investment in a coal company though the company issued a profit warning and its stock price dropped 22% in one day. By September 2015, 99% of this customer’s account was invested in four energy sector securities, with over 50% of her account invested in the coal company. As of March 2016, the customer has experienced $86,891 in losses.
Based on the foregoing, Ramos violated FINRA Rules 2111 and 2010. Without admitting or denying the allegations made against him, Ramos consents to a three-month suspension from associating with any FINRA member in any capacity, partial restitution totaling $50,000, plus interest, to this customer, and 10 hours of continuing education concerning investment suitability.
Ramos was most recently associated with Wynston Hill Capital, LLC from August 2018 to November 2019. During the relevant time period related to this alleged misconduct, Ramos was associated with Bishop, Rosen & Co., Inc. and Westpark Capital, Inc. from September 2014 to February 2016 and February 2016 to August 2018, respectively. All brokerage firms are located in New York, New York.
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