David Joseph Escarcega Named Respondent in FINRA Complaint

FINRA has recently named David Joseph Escarcega (Arizona) a respondent in a complaint alleging that he made false and misleading statements to customers related to purchases of renewable secured debentures1. The complaint alleges Escarcega falsely told the customers that the debentures were safe, low-risk, liquid or guaranteed and made unsuitable recommendations to 12 customers to purchase a total of almost $1.5 million of the debentures. Escarcega’s recommendations regarding the purchases were inconsistent with his elderly and retired customers’ investment objectives and risk tolerances. These recommendations resulted in excessive concentrations of the customers’ total investable assets and/or net worth in a speculative and risky investment. See page 35 of the FINRA report here.

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1Debenture: an unsecured (without collateral) bond backed only by the integrity of the issuer (borrower). The parameters of the bond are set forth in an agreement called an indenture

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