Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that former broker/adviser Efrain Trujillo (CRD # 3106482) was recently barred from the securities industry and fined by FINRA’s Department of Enforcement. The sanctions occurred as a result of an investigation into his failure to supervise.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Trujillo.
Registration Background for Efrain Trujillo
Mr. Trujillo first became registered in the securities industry in 1998. He was most recently registered with Los Angeles, CA based Western International Securities, Inc. (CRD # 39262). His prior registrations include Financial West Group (CRD # 16668) from June 2012 to August 2017 and SRM Securities, Incorporated (CRD # 13716) from October 1998 to October 2012.
FINRA’s Allegations against Efrain Trujillo
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated November 17, 2020, Mr. Trujillo consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between December 2013 and July 2017, while registered with Financial West, [Mr.] Trujillo failed to supervise four former Financial West registered representatives, who excessively traded and recommended qualitatively unsuitable trades involving options, low-priced securities, and Non-Traditional Exchange Traded Products (ETPs) in nine accounts belonging to five customers”;
- “[Mr.] Trujillo failed to investigate red flags indicative of trading misconduct and take appropriate action in a manner reasonably designed to ensure that the representatives acted in compliance with FINRA rules”;
- “In December 2013, a Financial West compliance principal specifically informed [Mr.] Trujillo of red flags indicative of excessive trading in the accounts of customers assigned to two of the four representatives”;
- “In the face of this information indicative of violative trading practices, [Mr.] Trujillo acted unreasonably by failing to further scrutinize the conduct of the four representatives”; and
- By virtue of his actions, Mr. Trujillo violated NASD Rule 3010(a) and FINRA Rule 3110(a), regarding supervision, FINRA Rule 2360(b)(20), regarding duty to supervise (options) and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
Efrain Trujillo Barred from the Securities Industry
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s November 17, 2020 AWC also indicates that Mr. Trujillo consented to the following sanction(s):
- A bar from association with any FINRA member in all capacities; and
- A fine of $20,000.00.
Efrain Trujillo has A History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Trujillo reveals he has a history of customer complaints and/or customer initiated arbitrations, including but not limited to:
- On May 13, 2016 a customer initiated written complaint was made against Mr. Trujillo for alleged actions that occurred while he was associated with Financial West Group. The client alleged Mr. Trujillo made unsuitable recommendations in 2015. The customer further alleged damages in the amount of $45,474.00. On June 24, 2016 the complaint was settled in the amount of $45,474.00
If you or someone you know has or had a brokerage account with Efrain Trujillo and have concerns regarding losses in your investments or possible sales practice violations including fraud, 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.