According to a Decision by the Financial Industry Regulatory Authority (FINRA), David Escarcega willfully made materially false and misleading statements in connection with seven customers’ purchases of debentures totaling $516,825. Furthermore, Escarcega allegedly made unsuitable recommendations in connection with 12 customers’ purchases of the same debentures totaling approximately $1.5 million. Allegedly, his debt product that he recommended came with a “high degree of risk,” and Escarcega allegedly did not do his due diligence to find out if the product would be suitable for his clients. A broker has a duty to do so, and, if he does not, his brokerage firm can be held liable for losses on a contingency fee basis. Many of Escarcega’s clients were elderly and retired and could not afford the high risk and illiquidity with which these products came. FINRA subsequently barred him from the industry for this misconduct.
Previously, Mr. Escarcega was registered with MML Investors, Pruco Securities, Mony Securities, Lincoln Financial Securities, Chase Investment Services and Center Street Securities in Phoenix, Arizona from March 2010 until April 2016. He has two customer disputes against him and he is currently not registered within the industry. Please call our securities law firm today located in Chicago, Illinois if you have suffered losses with Escarcega. We may be able to help you bring a claim against his former firm in the arbitration forum on a contingency fee basis. The call is free with no obligation.
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