Jaime Andres Diaz, a New York stockbroker, has been accused of converting hundreds of thousands of dollars from his clients while falsely assuring them that their funds would be invested in real estate development and other projects.
Diaz was charged by the securities industry regulators with converting approximately $850,000 from customers, one of whom was elderly. He also allegedly converted $50,000 from a registered representative who worked at his member firm.
Diaz told the customers that their funds would be used to invest in restaurants and said to one customer that the latter’s funds would be invested in real estate developments, according to the complaint.
However, Diaz did not invest the funds as represented but used the funds for his personal use such as to pay expenses related to his branch office business without the knowledge or authorization of the said customers and the mentioned registered representative, according to the allegations.
Diaz also used to pay part of the funds to pay earlier investors and as a result, willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, according to the complaint.
Diaz participated in private securities transactions regarding the sale of promissory notes and did not disclose his participation to his firm, according to the allegations.
Jaime Diaz also falsely certified that his outside business disclosure form in CRD was accurate, when in reality he did not disclose some of his outside business activities and falsely claimed another outside business activity was a non-investment business activity, according to the allegations.
Finally, Diaz failed to fully respond in a timely manner to the regulators; requests for information and documents, including personal bank account statements, preventing FINRA from pursuing material areas of its investigation into Diaz’s conduct, all according to the complaint.
The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no obligation evaluation of their recovery options, at 888-998-0520.