The Financial Industry Regulatory Authority (FINRA) recently announced that it has barred two former registered representatives of JP Morgan Chase Securities, LLC, Fernando L. Arevalo and Jimmy E. Caballero, after determining that they converted approximately $300,000 from an elderly widow with “diminished mental capacity,” and subsequently failed to fully cooperate with its investigation.
According to FINRA’s investigation, the elderly customer liquidated two annuities and deposited approximately $300,000 of proceeds into a bank account that Arevalo had opened for her on April 18, 2013.
Caballero then withdrew the funds using a cashier’s check and deposited the funds into a joint account that he had previously opened in his name and the name of the widow’s at a different bank on May 1, 2013.
The bank questioned the deposits. Arevalo then picked up the elderly customer and drove her to the bank to confirm that she had deposited the funds.
Caballero and Arevalo then misappropriated the funds for their personal use. The widow was neither aware of the withdrawals and purchases nor did she authorize any of the transactions.
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