Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Ricardo Turlan from the securities industry for two months. Mr. Turlan consented to the suspension after FINRA alleged that he engaged in discretionary trading without written authorization in two customer accounts between June 2017 and February 2019. Mr. Turlan also allegedly mismarked approximately 72 trades as “unsolicited” when the trades should have been marked as “solicited.” FINRA also fined Mr. Turlan $7,500.
The alleged conduct occurred while UBS Financial Services Inc. (“UBS”) employed Mr. Turlan in San Antonio, Texas. UBS discharged Mr. Turlan in July 2019, alleging misconduct related to a non-discretionary account and trading in accounts that reached levels that could be considered unsuitable.
If you have suffered financial losses investing with Ricardo Turlan, or suspect that Mr. Turlan did not have your best interest in mind when recommending investments or making account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your brokerage account.
Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as UBS Financial Services Inc.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019063490102
FINRA and Mr. Turlan entered into a Letter of Acceptance, Waiver, and Consent No. 2019063490102 on June 3, 2021, after FINRA alleged that between June 2017, and February 2019, while associated with UBS, Mr. Turlan executed approximately 130 trades in two customer accounts using discretion without the customers’ prior written authorization and without the firm accepting these accounts as discretionary in writing. As a result, Mr. Turlan violated NASD Rule 2510(b) and FINRA Rule 2010.
Unauthorized trading often occurs in non-discretionary accounts, where a customer retains discretion. In non-discretionary accounts, brokers must obtain a customer’s permission every time before placing a trade.
Unauthorized trading is an unethical and illegal practice. It is also a violation of securities rules and regulations and can cause enormous harm to customers.
In the account of one of the customers, Mr. Turlan also mismarked approximately 72 trades as “unsolicited” when the trades should have been marked as “solicited,” causing the firm to maintain inaccurate books and records. Accordingly, Mr. Turlan violated FINRA Rules 4511 and 2010.
A “solicited” trade is a trade that was the broker’s idea. It is a trade where the financial advisor initiated and recommended the buy or sell transaction to the client. An “unsolicited” trade is a trade that the customer initiated. It is a trade made by the client on their own initiative, without recommendations, suggestions, or prompting from the broker.
The distinction between solicited and unsolicited is important to determine whether the broker’s suitability and best interest duties arise. If the trade is solicited, or recommended by the broker, the broker has a duty to make a suitable recommendation that is in the best interest of the customer. Click here to read more about solicited v. unsolicited trades.
Financial Advisor Ricardo Turlan (CRD No. 4431836)
Ricardo Turlan, who also goes by Ricardo Patricio Perez-Ruland and Ricardo Patricio Ramirez, has 14 years of experience in the securities industry and has been associated with the following firms:
- UBS Financial Services Inc. in San Antonio, TX, from October 2015 to August 2019.
- BBVA Securities Inc. in San Antonio, TX, from May 2013 to October 2015.
- BBVA Compass Investment Solutions, Inc. in San Antonio, TX, from June 2009 to May 2013.
- BBVA Investments Inc. in San Antonio, TX, from July 2006 to July 2009.
- Citicorp Investment Services in Lon Island City, NY, from October 2001 to November 2002.
Mr. Turlan is currently not registered with any firm.
In 2020, Mr. Turlan was suspended by FINRA for three months for failing to respond to FINRA’s request for information.
According to his public disclosure report with FINRA, Mr. Turlan has been the subject of at least one customer dispute. In March 2019, a customer filed a written complaint to UBS Financial Services Inc. alleging that Mr. Turlan exercised discretion on the account even though she had not formally authorized the use of discretion. The complaint also alleged that Mr. Turlan promised her not to charge commissions in 2018, but he did. Mr. Turlan and UBS settled the dispute for $110,000.
UBS Financial Services Inc. – A Duty to Supervise
Financial institutions like UBS Financial Services Inc. must properly supervise financial advisors and customer accounts. Brokerage firms must establish and maintain a reasonably designed system to oversee account activity, such as unauthorized trading, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have suffered investment losses with Ricardo Turlan or UBS or suspect other inappropriate activity occurred in your investment or retirement account, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential review of your legal rights.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.
Iorio Altamirano LLP is a bilingual law firm, fluent in both English and Spanish.