Update on Anthony Diaz – Securities Fraud Investigation
Have you suffered losses investing with former financial advisor Anthony Diaz (CRD#: 4131948, Scotrun, PA)? If so, the securities attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA arbitration claim against his employer.
As we told you in January, Diaz, a Pennsylvania stockbroker, who was ousted from the securities industry, has reportedly been ordered to pay more than $4 million in damages ahead of his federal trial on criminal fraud charges.
FINRA ruled that Anthony Diaz must pay damages to 19 former clients, noting he failed to respond to arbitration. The award includes compensatory damages of about $1 million, punitive damages of $2.9 million and attorneys’ fees of more than $400,000.
Once regarded as one of the nation’s top brokers, FINRA claims that Diaz allegedly earned millions of dollars by pushing high-fee, high-risk alternative investments, such as real estate investment trusts (REITs) and equipment leasing partnerships. These types of investments typically offer high broker commissions.
According to his FINRA BrokerCheck report, he was affiliated with 11 investment firms in 15 years, getting fired from five of them and resigning from another before he was finally barred by the Financial Industry Regulatory Authority.
Diaz has 42 customer complaints listed on his broker report.
According to one report, a retired pharmaceutical company worker who invested about $350,000 with Diaz, won a $220,000 award against him a few years ago. First Allied Securities Inc., where Diaz worked between 2005 and 2009, settled the case in November, according to records.
According to a grand jury indictment, Diaz allegedly had clients sign blank documents, then he purportedly falsified their net worth, income and risk tolerance to make it appear they met the suitability requirements of the products.
Diaz’s criminal trial is scheduled for April.
Meanwhile, FINRA is still getting complaints about Diaz. Last month, a former client alleged that Diaz falsified documents and misled her and her husband, according to a filing. The woman reported about $95,000 in damages.
Failure to Supervise
Brokers have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for 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.
If you suffered losses investing with Anthony Diaz, the attorneys of The White Law Group may be able to help you recover your losses. For a free consultation with a securities attorney, please call 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.
For more information on The White Law Group, visit www.WhiteSecurtiesLaw.com.