Erez Law recently filed a FINRA arbitration against Westpark Capital, Inc. and its broker Miguel Rivera, Jr. (CRD #3060928), who was a registered representative of Westpark Capital, Inc. in Fort Lauderdale, Florida from August 2016 through June 2018.
The Erez Law client, who was an eldrly widow, alleges the following in the newly filed FINRA claim:
The client and her late husband entrusted Rivera with their securities investments, which also represented their irreplaceable retirement savings. The couple were of advanced age, retired, inexperienced, unsophisticated and unable to lose their irreplaceable retirement savings. The clients placed a high degree of trust and confidence in Rivera, who was introduced to them by their accountant.
Despite the clients’ advanced age, limited resources, lack of sophistication and inability to subject their savings to undue risk, it is alleged that Rivera engaged in unsuitable and rank speculation in their account and caused them devastating and unacceptable losses for which Westpark Capital, Inc. is responsible.
Erez Law alleges that Rivera engaged in a pattern of speculative and unsuitable trading, which involved short term trading, penny stocks, over-concentration and high risk/speculative stocks and securities.
The speculative and unsuitable stocks sold to the couple include:
- Big 5 Sporting Goods
- Chicken Soup for the Soul Entertainment
- Children’s Place
- Delmar Pharmaceuticals/Kintara Therapeutics
- Direxion Daily India Bull 3X
- Grayscale Bitcoin Trust
- Meridian Waste Solutions
According to the claim, Rivera purchased these stocks without obtaining the couple’s required approval prior to each transaction. Rivera engaged in rampant unauthorized trading. By engaging in unauthorized trading, Rivera failed to provide the clients with required risk disclosures in connection with the investments he purchased in their account.
In 2013, the Florida Office Of Financial Regulation sanctioned Rivera to a denial of his registration regarding, “making a material false statement on the application for registration.”
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.