July 25, 2019 Comments (0) Blog, Current Investigations

Robert J. Escobio Broker Investigation

Robert J. Escobio investigation, Featured by Top Securities Fraud ATtorneys, The White Law Group

Robert J. Escobio Reportedly Barred after Fraudulent Precious Metals Scheme in Miami, FL

Are you concerned about investments with former broker Robert J. Escobio in Miami, Florida? If so, the securities attorneys at The White Law Group may be able to help you through FINRA Arbitration.

The Financial Industry Regulatory Authority (FINRA) is reportedly currently investigating Robert J. Escobio former registered representative of Southern Trust Securities after he was reportedly barred by the CFTC for an allegedly fraudulent precious metals scheme. FINRA alleges that Escobio is not answering requests for information in its investigation.

On Sept. 1 2016, a final judgment ruled in favor of The U.S. Commodity Futures Trading Commission (CFTC) in a trial involving a fraudulent precious metals scheme allegedly perpetrated by Robert Escobio of Miami, Florida, reportedly through his companies Southern Trust Metals, Inc. and Loreley Overseas Corporation.

Escobio allegedly convinced retail investors to purchase physical precious metals that allegedly were held in depositories in London or Hong Kong, according to the order. Further, the order finds that customers were purportedly told that they could purchase additional metals by utilizing loans arranged by Escobio and his companies, when, in fact, he allegedly did not purchase or sell physical metals, nor did he make any loans.

According to the order, Escobio allegedly transferred customer funds through his company, Loreley, and then to trading accounts at United Kingdom firms where customer funds were purportedly used to engage in margined derivatives trading.

According to the order, 78 leveraged metals customers allegedly suffered losses totaling $1,543,892.

Escobio and the two companies were reportedly permanently enjoined and prohibited from trading and ordered to pay restitution in the amount of $1,543,892 and a civil penalty of $254,919.66. The Judgment reportedly also orders Southern Trust and Escobio to pay additional restitution of $559,725 and an additional penalty of $120,112.33 for an unregistered futures scheme.

According to his FINRA BrokerCheck report, Escobio was a registered representative at Southern Trust Securities in Miami, Florida from June 2000 until July 2017.

Recovery of Investment Losses

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

When brokers abuse client accounts and conduct transactions that violate securities laws, such as churning, and unauthorized trades, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states, includingFlorida. Our attorneys have recovered millions of dollars from many brokerage firms in the past.

If you have suffered losses investing with Robert J. Escobio, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.

Click here for your FREE consultation.

 

 

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