Nonetheless, throughout this era, “Rivero used WhatsApp to trade tons of of securities-related messages with six agency prospects. These messages included, amongst different issues, acquiring authorization to purchase and promote shares, discussions about account efficiency, and discussions associated to the shopper grievance and buyer mortgage,” FINRA mentioned.
In 2020, Rivero “falsely attested that he didn’t use unapproved messaging providers comparable to WhatsApp for business-related communications,” in accordance with the order.
Rivero additionally tried to settle a buyer grievance with out the data or consent of his agency. Jefferies’ written supervisory procedures required registered reps “to escalate buyer complaints to managers and prohibited representatives from settling complaints that had not been disclosed to the agency,” the order states.
In April 2021, a buyer, who was additionally Rivero’s former brother-in-law, complained to Rivero about losses in his account from investments in nontraditional exchange-traded funds, the order explains.
“Rivero supplied, through WhatsApp, to reimburse the shopper over $300,000 in month-to-month installments of $10,000 to resolve the grievance. Rivero didn’t speak in confidence to Jefferies the shopper’s grievance or Rivero’s try and settle with the shopper,” the order states.
“Nevertheless, Rivero didn’t attain a settlement settlement with the shopper or make any funds to him. In the end, the shopper filed an arbitration declare in opposition to Jefferies and Rivero,” in accordance with FINRA.
FINRA fined Rivero $15,000 and suspended him for six months.