Jorge Netto (CRD#: 2432661), a registered representative with Boreal Capital Securities LLC (CRD#: 158599) in Miami, Florida, is currently being investigated by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in undisclosed outside business activities, according to his BrokerCheck record accessed on July 2, 2020. What happened to lead to this FINRA investigation into Jorge Netto’s conduct as a broker? Read on to learn more.
On May 21, 2020, FINRA recommended that disciplinary action be brought against Jorge Netto. FINRA is alleging that the broker violated FINRA Rule 3270 and FINRA Rule 2010 by engaging in outside business activities without receiving approval from his member firm. What were his outside business activities? According to the Detailed Report of his BrokerCheck record, Jorge Netto disclosed the following outside business activities:
- Director and part-owner of Quatro Management Inc. Started April 2, 2004. Rehabs and rents apartments in South Florida. Compensated with dividend on monthly rent collected.
- Sunset Lake Holdings LLC. Started November 16, 2004. Company owns real estate in Central Florida. Plans to develop lots in the future. Not yet compensated.
- Sounet Holdings LLC. Never utilized.
However, he is being sanctioned for not disclosing certain outside business activities, so it is unclear what endeavors he may have been involved with.
This recent FINRA investigation into undisclosed outside business activities is not the only disclosure on Jorge Netto’s BrokerCheck record. This broker was also the subject of several disclosures in the early 2000s:
- On March 21, 2000, a customer alleged that Jorge Netto traded without authorization. The customer sought $560,000. The matter later settled for $150,000.
- On February 16, 2001, a customer filed a complaint against Jorge Netto, alleging that he traded without authorization and improperly sold securities to satisfy margin calls. The client sought $34,774 in damages; the matter later settled for $80,000.
- On May 15, 2001, Jorge Netto was terminated from First Union Securities. The firm found that Jorge Netto made unauthorized trades and failed to follow firm policy regarding discretionary trading.
Jorge Netto has passed the Series 63 – Uniform Securities Agent State Law Examination, the SIE – Securities Industry Essentials Examination, the Series 7 – General Securities Representative Examination, and the Series 24 – General Securities Principal Examination. He is licensed to sell securities in California, Florida, New Hampshire, New Jersey, New York, and Ohio.
Over his 25-year career in the securities industry, Jorge Netto has worked for seven brokerage firms. In addition to Boreal Capital Securities LLC (CRD#: 158599) in Miami, Florida, he has also worked for the following firms:
- Northeast Securities, Inc. (CRD#: 25996)
- Colony Park Financial Services LLC (CRD#: 41534)
- Atlas One Financial Group LLC
- A.G. Edwards & Sons. Inc. (CRD#: 4)
- First Union Securities, Inc. (CRD#: 19616)
- First Union Brokerage Services, Inc. (CRD#: 8112
If Jorge Netto was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn more about your options for investment loss recovery. Call (877) 238-4175 or email firstname.lastname@example.org for your free case consultation with a securities attorney.