Advisor Dion Padilla Sanctioned Over Variable Annuity Misconduct

Stoltmann Law Offices continues to investigate Dion Padilla, who was subject to a regulatory action brought against him by the Financial Industry Regulatory Authority (FINRA). The action alleged that Padilla effected an unauthorized purchase of a variable annuity for a customer and misrepresented that the investment was not a variable annuity. The customer had told Padilla that he did not want his funds invested in a variable annuity due to the high fees associated with them, and because the client wanted liquidity. FINRA also found that Padilla caused the customer to invest an additional $558,889 into the variable annuity by falsely claiming that the investment purchased was not a variable annuity. These statements were false and misleading. Variable annuities are complex financial and insurance products, and a broker such as Mr. Padilla must take into account a client’s age, net worth, investment objectives and investment sophistication before recommending or selling a security such as a variable annuity. If he does not, his brokerage firm may be held liable for losses because it has a duty to reasonably supervise its employees.
According to his online FINRA BrokerCheck report, Padilla was registered with Merrill Lynch in New York, New York from August 2001 until March 2002, Valic Financial Advisors in Houston, Texas from August 2002 until March 2003, UBS Financial Services in Weehawken, New Jersey from December 2002 until August 2003, Securities America in Lavista, Nebraska from October 2003 until March 2006 and Next Financial Group in San Antonio, Texas from February 2006 until February 2017. He has four customer disputes against him, one of which is currently pending. He is currently not registered and he has been suspended from the industry. Please call today to speak to an attorney about your losses with Mr. Padilla. We may be able to sue Next Financial on a contingency fee basis.