The Financial Industry Regulatory Authority (FINRA) recently announced that it barred former UBS Financial Services broker, Alex Gerardo Herrera. FINRA barred Herrera, who was employed in the Miami office of UBS, after he refused to provide information requested by FINRA in connection with its investigation of his possible participation in unreported outside business activities and private securities transactions—a practice in the securities industry known as “selling away”.
Selling away, or selling securities and investments to clients that are not offered by the broker’s brokerage firm, is strictly prohibited by FINRA. This prohibition ensures that a broker or financial advisor only offers to sell securities that have properly been vetted and approved by the respective financial firm. In August 2018, Herrera resigned from UBS after the company filed a Uniform Termination Notice with FINRA. The notice provided that the reason for the notice was alleged selling away by Herrera. He subsequently refused to provide information requested by FINRA regarding the resignation and alleged selling away—a violation of FINRA rules.
In a separate allegation that is pending before FINRA, customers allege that the Herrera “exercised impermissible discretion in their accounts, traded their portfolio for his own financial gain, and engaged in unapproved outside financial transactions with them in connection with which he stole their money.” The claim is for $7,000,000.
Without admitting or denying the findings, Herrera consented to the sanction and to the entry of findings that he refused to provide information requested by FINRA.
Herrera entered the securities industry in June 1999 and was registered with UBS from March 2012 until May 2018. Prior to his employment with UBS, Herrera worked for HSBC Securities in Coral Gables, FL, Atlas One Financial Group in Miami, Citicorp Investment Services in New York, and MML Investors Services in Springfield, MA.
If you or someone you know has lost money because of broker or financial advisor misconduct, Lance McCardle and his team of experienced investment fraud lawyers can help. Our firm has helped hundreds of clients recover their losses due to broker fraud or negligence. Contact us today.