John Jaramillo (CRD#: 2659263), a former registered representative, has been terminated from his role as a broker with Western International Securities, according to his BrokerCheck record accessed on March 16, 2020.
What happened to lead to John Jaramillo’s termination from Western International Securities? On March 5, 2020, the firm found that John Jaramillo sold an unapproved product, so he was subsequently terminated. Why is it so problematic that John Jaramillo allegedly sold an unapproved product to clients in his role as a broker with Western International Securities? FINRA rules and federal securities regulations mandate that brokers only sell securities that have been properly vetted and approved by their member firms. Firms have a due diligence process in place where they independently verify and analyze the merits of a particular offering. If investments are “sold away,” they do not go through this process and investors are more susceptible to fraud.
When brokers sell securities products that have not been approved by their firms, this is known as “selling away.” Selling away can set up clients for potentially significant losses, as these unapproved products have not been vetted by the broker-dealer. Thus, after discovering that John Jaramillo “sold away” from the firm, Western International Securities terminated him.
John Jaramillo is not currently registered as a broker. In addition to Western International Securities (CRD#: 39262), John Jaramillo has also worked for Financial West Group (CRD#: 16668) and PFS Investments Inc. (CRD#: 10111). FINRA expelled Financial West Group from the securities industry on February 13, 2020. John Jaramillo has passed the Series 63 – Uniform Securities Agent State Law Examination, SIE – Securities Industry Essentials Examination, the Series 7 – General Securities Representative Examination, the Series 6 – Investment Company Products/Variable Contracts Representative Examination, and the Series 26 – Investment Company Products Principal Examination.
If John Jaramillo was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn about your options for recovery. Call (877) 238-4175 or email firstname.lastname@example.org for your free case consultation.