According to reports, Robert Estevez (CRD #3161419, Greenwich, Connecticut) submitted an AWC in which he was fined $20,000 and suspended from association with any FINRA member in any capacity for two months. Without admitting or denying the findings, Estevez consented to the sanctions and to the entry of findings that he allegedly recommended unsuitable short-term steepener transactions to his customers.
The findings stated that Estevez allegedly recommended the steepeners—complex, structured products with returns linked to the spread between longer and shorter-term interest rates—as part of an active, short-term trading strategy. In fact, Estevez purportedly recommended that some of his customers hold the steepeners for as little as two months.
As a result of the illiquid secondary market for steepeners, Estevez’s recommendations allegedly often resulted in customers buying steepeners at full price and selling them at a loss. This short-term trading strategy was purportedly unsuitable, and resulted in an aggregate of approximately $24,000 in customer losses. The suspension is in effect from October 17, 2016, through December 16, 2016.
For FINRA’s full findings see FINRA case # 2014040158902.
According to FINRA Broker Check , Estevez is currently registered with Joseph Gunnar & Co.in New York, NY since 09/2016. He was previously registered with Investors Capital Corp. in Greenwich, CT from 12/2008 – 09/2016.
For more information on steepeners see, Investor Alert: Structured Notes & Short Term Steepeners.
Brokerage firms are required to properly supervise all advisors they employ and to ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Estevez’s former employer failed to properly supervise him, his employer may be held responsible for the losses in a FINRA arbitration claim.
If you suffered losses investing with Robert Estevez and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.