The Financial Industry Regulatory Authority (FINRA) barred California registered general securities representative Rafael Ramon Sanchez from association with any member firm after Sanchez was found to have engaged in egregious unethical conduct, independently opening accounts in elderly customers' names without their knowledge, permission or consent, misuse of funds, including several attempts to transfer customer funds, without permission, out of the customers' personal bank accounts.
Sanchez was found to have opened accounts with a FINRA-regulated broker-dealer on behalf of customers who knew nothing of Sanchez's activities. FINRA found that Sanchez made automated clearing house withdrawals of $140,000 from one customer account to a firm account, attempted to wire over $75,000 from another customer's account to a fraudulent account he opened and wrote an $82,000 check in a customer's name for deposit in one of the fraudulent accounts Sanchez had created.
FINRA also discovered false letters of authorization totaling $58,000 that Sanchez had fabricated, allegedly purporting to be one of his customers; a customer's signature on one of these LOAs was found not to have matched the real customer's actual signature. Furthermore, these customers did not receive promissory notes, receipts or other investment documents reflecting these loans.
FINRA found that Sanchez obtained personal financial information from customers by founding a company to manage monthly finances and pay customer bills for a fee—these fees were paid, but the elderly customers who paid them soon found their checks bouncing where their checks had never bounced before.
Last, Sanchez failed to advise his firm, MAM Securities, Inc., of his outside financial activities, some of which posed clear conflicts of interest, in violation of FINRA and firm policy and codes of ethics.
If you suspect a brokerage firm or broker has engaged in highly questionable, unethical or illegal practices that have proven harmful to your investments or interests, such as theft or other embezzlement, or acting on your behalf without your consent, please call The Law Offices of Jonathan W. Evans & Associates at 818-760-9880.