Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Jose Candelario Padilla (a/k/a Jose Candelario) (CRD # 4847560) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into unsuitable recommendations.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Candelario Padilla.
Registration Background for Jose Candelario Padilla
Mr. Candelario Padilla first became registered in the securities industry in 2004. He is currently registered with Guayama, PR based Nationwide Planning Associates Inc. (CRD # 31029). His prior registrations include NPA Asset Management, LLC (CRD # 131534) from October 2016 to December 2017 and Oriental Financial Services Corp. (CRD # 29753) from December 2015 to October 2016.
FINRA’s Allegations Against Jose Candelario Padilla
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated March 10, 2023 (No. 2021071134401), Mr. Candelario Padilla consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between March 2020 and October 2020, [Mr.] Candelario Padilla recommended retail customers purchase leveraged and inverse exchange-traded funds (NT-ETFs) without having a sufficient understanding of the risks and features associated with the products, thereby failing to have a reasonable basis to make those recommendations”;
- “…[Mr.] Candelario Padilla did not have a sufficient understanding of the features and risks associated with NT-ETFs—including, for example, that losses in NT-ETFs can be compounded because of the daily reset function”;
- “At [Mr.] Candelario Padilla’s recommendation, nine retail customers held a total of 14 NT-ETF positions for periods ranging from 14 to 65 days”;
- “These customers suffered net losses from NT-ETF trading of approximately $26,000”;
- By virtue of his actions, Mr. Candelario violated Exchange Act Rule 15I-1 (for conduct on and after June 20, 2020), regarding acting in the best interest of the retail customer (Reg BI), FINRA Rule 2111 (for conduct prior to June 30, 2020) regarding suitability and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Jose Candelario Padilla from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s March 10, 2023 AWC also indicates that Mr. Candelario Padilla consented to the following sanction(s):
- A three-month suspension from association with any FINRA member in all capacities;
- A fine in the amount of $2,500.00; and
- Restitution in the amount of $26,422.00 plus interest.
Jose Candelario Padilla Has A Prior History of Securities Industry Customer Complaints
In addition to Jose Candelario being suspended by FINRA from the securities industry regarding unsuitable recommendations, FINRA BrokerCheck for Mr. Candelario Padilla reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On August 22, 2019 a customer-initiated arbitration was commenced against Mr. Candealrio Padilla regarding alleged actions that occurred while he was associated with Oriental Financial Services. The customer’s allegations included negligent advice, misrepresentations and breach of contract. The customer further alleged damages in the amount of $102,499.78. On April 20, 2022, the complaint was settled in the amount of $20,000.00.
- On August 29, 2019 a customer-initiated arbitration was commenced against Mr. Candelario Padilla regarding alleged actions that occurred while he was associated with Oriental Financial Services. The customer’s allegations included overconcentration, fraud, inappropriate investment strategy, negligence, and breach of fiduciary duty. The customer further alleged damages in an amount between $100,000.00 and $500,000.00. On December 24, 2020, the complaint was settled in the amount of $60,000.00.
- On May 10, 2019 a customer-initiated arbitration was commenced against Mr. Candelario Padilla regarding alleged actions that occurred while he was associated with Oriental Financial Services. The customer’s allegations included reckless recommendation, fraud, and breach of fiduciary duty. The customer further alleged damages in an amount between $1,000,000.00 and $5,000,000.00. On April 4, 2020, the complaint was settled in the amount of $487,500.00.
Have You Lost Money with Jose Candelario Padilla
If you or someone you know has or had a brokerage account with Mr. Jose Candelario Padilla (a/k/a Jose Candelario) 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.