FINRA barred former JP Morgan Chase & Co. brokers, Jimmy E. Caballero and Fernando L. Arevalo, of Palmdale, California for the alleged wrongful conversion of $300,000 from an elderly widow. The findings state that Caballero and Arevalo "exploited her failing mental capacity to carry out the scheme."
The elderly client reportedly maintained accounts at JPMorgan and a bank affiliate, where Caballero and Arevalo worked.
Because of the customer's diminished mental capacity, Arevalo allegedly helped open and deposit $300,000 gained from the sale of two annuities into a bank account. The investigation states that the funds were then withdrawn with the utilization of two cashier's checks with Caballero depositing the withdrawn funds into a joint account he opened at a different bank.
When the new bank questioned him, Caballero allegedly drove the elderly customer to the bank to confirm the source of the funds.
Following this, however, Arevalo and Caballero allegedly depleted the third party bank account through numerous checks payable to Arevalo. Additionally, the pair allegedly used the bank account's debit card for personal expenses including retail purchases, real estate and car loans.
The investigation states that the elderly client was unaware of these withdrawals and did not authorize the transactions. FINRA's Office of Fraud Detection and Market Intelligence stated that Arevalo and Caballero both failed to provide all requested information relevant to the investigation.
If you have invested with Jimmy Caballero, Fernando Arevalo, JPMorgan or any broker or firm whose misappropriation or wrongful conversion of funds has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.
News: FINRA Bars Two Brokers for Stealing $300,000 From Elderly Widow With Diminished Mental Capacity (Financial Industry Regulatory Authority Press Release)