Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Hector Ramos (CRD # 4172477) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The suspension occurred during the course of an investigation into unsuitable recommendations of securities transactions. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Ramos.
Registration Background for Hector Ramos
Mr. Ramos first became registered in the securities industry in 2000. He was most recently registered with New York, NY based Wynston Hill Capital L.L.C. (CRD # 103811) from August 2018 to November 2019. His prior registrations include Westpark Capital, Inc. (CRD #39914) from February 2016 to August 2018 and Bishop, Rosen & Co., Inc. (CRD # 1248) from September 2014 to February 2016.
FINRA’s Allegations against Hector Ramos
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated June 1, 2020, Mr. Ramos consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “A recommendation may be unsuitable if it results in an undue concentration in a particular security or category of securities and the correspondent increased risk of loss is inconsistent with the customer’s investment profile”;
- “AV opened an account with the Firm in October 2014, with [Mr.] Ramos as her broker. At the time, AV was disabled, unemployed, living on a fixed income, and had limited investment experience”;
- “Most of AV’s net worth derived from an award she had received in a medical malpractice suit and was invested in her account at the Firm”;
- “At the end of January 2015, AV’s account was valued at approximately $114,000, which represented approximately 75% of her net worth”;
- “Starting in February 2015, [Mr.] Ramos recommended that AV invest primarily in four energy sector securities”;
- “Despite the volatility of the energy market, the volatility of the specific securities, and AV’s investment profile, [Mr.] Ramos repeatedly recommended that AV increase her positions in energy sector securities, including two additional energy sector securities, throughout the Relevant Period”;
- “…[Mr.] Ramos recommended that AV increase her investment in one coal company, even after that company issued a profit warning and its stock price dropped more than 22% in one day”;
- “By September 2015, approximately 99% of AV’s account value was invested in four energy sector securities, with over 50% of AV’s account invested in the coal company discussed above”;
- “AV realized losses totaling $86,891”; and
- “By virtue of the foregoing, [Mr.] Ramos violated FINRA Rules 2111 and 2010.”
FINRA Sanctions Hector Ramos
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s June 1, 2020 AWC also indicates that Mr. Ramos consented to the following sanction(s):
- A suspension from association with any FINRA member firm in any and all capacities for three months;
- Partial restitution in the amount of $50,000.00 plus interest; and
- Completion of 10 hours of continuing education concerning suitability, within 60 days of re-association with any FINRA member firm.
Hector Ramos has a History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Ramos (pages 18 -19) reveals he has a history of at least 1 customer complaints including but not limited to the following:
- On June 10, 2014 a customer initiated an arbitration in which Mr. Ramos was named as a Respondent/Defendant for actions that allegedly occurred while associated with Morgan Stanley Smith Barney. The customers alleged damages in the amount of $700,000.00 for unsuitable recommendations. The customers further alleged that Mr. Ramos then paid them $10,000.00 to cover losses so they would not make a complaint. The arbitration was settled on March 2, 2015 in the amount of $120,000.00.
If you or someone you know has or had a brokerage account with Mr. Hector Ramos 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.