Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker, John R. Jaramillo (CRD # 2659263) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into the selling of a non-approved product. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Jaramillo.
Registration Background for John R. Jaramillo
Mr. Jaramillo first became registered in the securities industry in 1996 and was most recently associated with Westlake Village, CA based Western International Securities, Inc. (CRD # 39262) from June 2008 to March 2020. His prior registrations include Financial West Group (CRD # 16668) from September 2000 to June 2008 and PFS Investments Inc. (CRD # 10111) from January 1996 to August 2000.
FINRA’s Allegations against John R. Jaramillo
FINRA’s investigation led to Mr. Jaramillo entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on September 3, 2020. According to the AWC, Mr. Jaramillo consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between April and September 2016, [Mr.] Jaramillo participated in unapproved private securities transactions involving the sale of promissory notes totaling $250,000”;
- “[Mr.] Jaramillo solicited investors to purchase promissory notes relating to the Woodbridge Group of Companies LLC (“Woodbridge”), a purported real-estate investment fund”;
- “[Mr.] Jaramillo sold $250,000 in Woodbridge promissory notes to three investors, two of whom were Western customers”;
- “Although the Firm’s written supervisory procedures prohibited registered representatives from engaging in private securities transactions without approval from the Firm, [Mr.] Jaramillo never sought or received approval from Western to sell Woodbridge promissory notes”;
- “In December 2017, Woodbridge filed a voluntary Chapter 11 bankruptcy petition. On December 27, 2018, the United States District Court for the Southern District of Florida issued final judgments against, among others, Woodbridge and its former owner, Robert H. Shapiro. SEC v. Shapiro, Case No. 17-24624 (S.D. Fla.)”;
- “Those judgments required Woodbridge and Shapiro to, among other things, disgorge their ill-gotten gains and also required Shapiro to pay a civil penalty”; and
- By virtue of the above, Mr. Jaramillo violated FINRA Rule 3280, regarding private securities transactions and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions John R. Jaramillo
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s September 3, 2020 AWC also indicates that Mr. Jaramillo consented to the following sanction(s):
- A suspension from association with any FINRA member firm in any capacity for a five month period;
- A fine in the amount of $5,000.00; and
- Disgorgement of received commissions of $3,770.83, plus interest.
John R. Jaramillo Has no History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Jaramillo reveals that he has no history of customer complaint(s)/arbitration(s).
If you or someone you know has or had a brokerage account with Mr. John R. Jaramillo 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.