Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/investment adviser, Cesar Hurtado (CRD # 4137948) was recently suspended from the securities industry by the FINRA Department of Enforcement after an investigation into unsuitable option strategy recommendations in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Hurtado.
Registration Background for Cesar Hurtado
Mr. Hurtado first became registered in the securities industry in 2000. He is currently registered with Miami, FL based Oppenheimer & Co., Inc. (CRD # 249). His previous registration includes but is not necessarily limited to CIBC World Markets Corp. (CRD # 630) from April 2000 to January 2003.
FINRA’s Allegations Against Cesar Hurtado
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated August 6, 2021, Mr. Hurtado consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between January 2013 and August 2019, [Mr.] Hurtado recommended and effected an unsuitable options strategy in the accounts of two customers”;
- “He repeatedly recommended that the customers take assignment, hold the subject securities, and later sell them at a loss, rather than mitigate losses through a spread options strategy as intended”;
- “Both customers were inexperienced options investors with relatively conservative investment objectives”;
- “When [Mr.] Hurtado recommended that the customers take assignment of, and hold, securities whose stock prices had already declined, [Mr.] Hurtado disregarded the risk-containment purpose of a put spread strategy, and then magnified the risk of loss through margin transactions and energy sector concentration”; and
- By virtue of his actions, Mr. Hurtado violated FINRA Rule 2111(a) regarding suitability, FINRA Rule 2360(b)(18)(A) regarding options and discretionary accounts, FINRA Rule 2360(b)(19) regarding options and suitability and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Sanctions Cesar Hurtado
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s August 6, 2021 AWC also indicates that Mr. Hurtado consented to the following sanction(s):
- A 45-day suspension from association with any FINRA member in all capacities;
- A fine in the amount of $5,000.00; and
- Attending and completing no less than 10 hours of continuing education regarding options trading and customer suitability.
Cesar Hurtado Has A History of Securities Industry Customer Complaints
In addition to Cesar Hurtado being suspended from the securities industry by FINRA after an investigation into unsuitable option strategy recommendations in customer accounts, FINRA BrokerCheck for Mr. Hurtado reveals he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On August 13, 2019, a customer-initiated arbitration was commenced naming Mr. Hurtado as a respondent regarding alleged actions that occurred while he was associated with Oppenheimer & Co., Inc. The customer alleged negligence, breach of fiduciary duty, breach of contract, fraud and negligent misrepresentation. The customer further alleged damages in the amount of $1,700,000.00. On July 16, 2020 the arbitration was settled in the amount of $275,000.00, with Mr. Hurtado required to contribute $137,500.00.
- On September 28, 2017 a customer-initiated arbitration was commenced naming Mr. Hurtado as a respondent regarding alleged actions that occurred while he was associated with Oppenheimer & Co., Inc. The customer alleged fraud, negligent misrepresentation, breach of fiduciary duty and negligence. The customer further alleged damages of $1,000,000.00. On November 6, 2018 the arbitration was settled in the amount of $285,000.00, with Mr. Hurtado required to contribute $142,500.00.
If you or someone you know has or had a brokerage account in which Cesar Augusto Hurtado was the broker and have concerns regarding losses in your investments or possible sales practice violations, including fraud, churning or unsuitability, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.