Former HSBC broker barred for alleged senior scam

Finra says Jaime Rodriguez bought two apartments with $200,000 from blind, elderly customer

Aug 29, 2017 @ 11:42 am

By InvestmentNews

The Financial Industry Regulatory Authority Inc. has barred former HSBC Securities broker Jaime R. Rodriguez in connection with a charge that he took $200,000 from an elderly and legally blind customer and used the money to purchase two apartments in his own name.

While a bank broker at HSBC in 2010, Mr. Rodriguez befriended an elderly and blind customer in the Bronx, N.Y., and started helping him with grocery shopping and other errands. In August 2012, when the man's lease on his apartment was terminated, Mr. Rodriguez offered his assistance in locating and purchasing an apartment.

In October 2012, Mr. Rodriguez paid approximately $70,000 for an apartment using the client's funds. The apartment was supposed to be purchased in the client's name, but the client — who could not see or read the documents due to his disability — was unaware that Mr. Rodriguez was the sole beneficial owner of the apartment, which became the client's home.

In December 2012, Mr. Rodriguez recommended that the client open a joint bank account with Mr. Rodriguez so the broker could help in bill paying. The joint banking account, opened at a separate bank with an opening balance of approximately $42,000, was funded exclusively by the customer and reached a balance as high as approximately $153,000 in September 2013.

When a grocery store within walking distance of the apartment closed, Mr. Rodriguez purchased a second apartment in nearby Yonkers, N.Y., using $130,000 from the joint banking account — again with Mr. Rodriguez as the sole owner. After the client decided to remain in the first apartment, Mr. Rodriguez rented out the second and kept the rental income.

Mr. Rodriguez, who began his career as a bank rep at Chase in 2007, joined HSBC in 2010. He was terminated by HSBC in July 2014 and joined Capital One in 2014. He was with CUSO Financial Services from 2016 until he was terminated this past April.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Gadget Girl

Orion's Clarke: Why integration is paramount for RIAs right now

Orion has tapped into a huge demand for customizable, integrated solutions that let advisers spend more time building their business. Hear from Eric Clarke and two of Orion's integrated partners to get their thoughts.

Latest news & opinion

Tax reform debate sparks fresh interest in donor-advised funds

Schwab reports new accounts up 50% from last year, assets up 33%.

Broker protocol for recruiting a boon for clients

New research finds advisers whose firms have joined the agreement take better care of customers.

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.

Raymond James executives call on industry to keep broker protocol

Also ask firms to pay for the administration of the protocol to 'ensure its longevity and relevance.'

Senate committee approves tax plan but full passage not assured

Several Republican senators expressed reservations about the bill, and the GOP cannot afford too many defections.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print