A former broker for both Wells Fargo Advisors and LPL Financial was arrested Monday in New Jersey and charged with stealing more than $500,000 from multiple clients to fund his gambling and personal expenses, according to the U.S. Attorney's Office.
The broker, Mario E. Rivero Jr., 38, was registered with Wells Fargo Advisors from December 2010 through October 2020 and then was registered at LPL Financial until last June, when he was barred from the securities industry for not cooperating with an investigation by the Financial Industry Regulatory Authority Inc., according to his BrokerCheck profile.
Rivero has been charged with two counts of wire fraud, one count of investment adviser fraud, and one count of securities fraud, according to the U.S. Attorney. Rivero, who is based in Elizabeth, New Jersey, couldn't be reached Wednesday morning to comment.
"Wells Fargo brought Mr. Rivera’s conduct to the attention of regulators and law enforcement, and we are reimbursing clients," a company spokesperson wrote in an email. An LPL spokesperson did not return messages Wednesday morning to comment.
From April 2018 through November 2020, Rivero, while working as an investment adviser, misappropriated at least $529,870 from four clients, according to the Department of Justice.
Rivero perpetrated a scheme to defraud multiple clients and obtained his clients’ money under the fraudulent pretense that he would invest the funds, according to the U.S. Attorney. Instead, he unlawfully diverted the funds to enrich himself and others.
Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.
Reshuffle provides strong indication of where the regulator's priorities now lie.
Goldman Sachs Asset Management report reveals sharpened focus on annuities.
Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.
Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
