Former Morgan Stanley Broker Candido Viyella Accused of Selling Away
Posted on Monday, June 7th, 2021 at 6:20 pm
Erez Law is currently investigating former Morgan Stanley broker Candido Viyella (CRD# 1829255) regarding selling away. Viyella was registered with Morgan Stanley in Miami, Florida from 2009 to 2020, when he was terminated regarding, “Registered representative terminated after allegations were made accusing him of participation in an outside investment involving clients for which the registered representative had a beneficial ownership interest.”
Selling away is when a U.S. based brokerage firm sells an investment to a client without his brokerage firm’s permission, the broker is selling investments away from the firm, or simply “selling away.” A broker might partake in this inappropriate practice to earn a commission he or she would otherwise have to pass up.
In May 2021, FINRA barred Viyella after he consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation into whether he participated in private securities transactions without providing prior written notice to his member firm.
According to public records, it is alleged that Viyella recommended his clients invest in the Conrad Hotel, a luxury hotel in Fort Lauderdale, Florida, in which he had a personal stake. It is alleged that Viyella knew the hotel was facing financial difficulties, yet recommended his clients invest in the hotel, causing them to suffer investment losses.
It is alleged that Viyella sold its customers promissory notes through CFLB Management, a company partly-owned by Viyella’s wife through a network of companies.
Viyella has been the subject of two customer complaints between 2019 and 2020, according to his CRD report:
October 2020. “Claimants allege inter alia FA solicited outside investment opportunity in or about October 2013 that was not authorized by Firm.” The case is currently pending.
October 2019. “Claimants allege inter alia FA solicited outside investment opportunities not authorized by firm – Oct 15, 2015 – Oct 18, 2019.” The case customer sought $500,000 in damages and the case was settled for $60,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Morgan Stanley may be liable for investment or other losses suffered by Viyella’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you 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.