Claim alleges: breach of fiduciary duty; failure to supervise; negligence and gross negligence; and, misrepresentations and omissions. The alleged activity took place between 2014 and 2016.

$100,000.00

Clients were sold unsuitable investments

$75,000.00

Client alleges that the investment was fraudulent

$70,000.00

Unsuitable Recommendations

$500,000.00

$45,000.00

Unsuitable Recommendations

$100,000.00

$20,000.00

Suitability, Failure to Supervise

$400,000.00

$40,000.00

Unsuitable Recommendations

$500,000.00

$65,000.00

FINRA

Respondent Diaz failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Letter

Suspension

All capacities

Indefinite

Continues until required payment is made or discharged.

4/30/2018

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Diaz is suspended on April 30, 2018 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Client alleges that RR made a poor recommendation, asked her and her husband to sign blank documents, overstated their net worth and income, put false information on their documents, and misled them in 2013-2014.

$94,918.00

$45,000.00

[REDACTED], and [REDACTED] allege violations of common law causes of action for breach of fiduciary duty, negligent supervision, and negligence. the wrongful conduct of its registered representative Anthony Diaz

$37,500.00

Client alleges forged investment documents.

$45,000.00

New Jersey Bureau of Securities

DIAZ IS THE SUBJECT OF AN ORDER BY A SELF-REGULATORY ORGANIZATION EXPELLING HIM FROM A NATIONAL SECURITIES ASSOCIATION. DIAZ IS THE SUBJECT OF AN ORDER BY A STATE SECURITIES ADMINISTRATOR REVOKING HIS REGISTRATION.

Order

Revocation

Diaz is denied all exemptions contained in N.J.S.A. 49:3-50 subsections (a) paragraph 9, 10, and 11 and subsection (b); and it is further ORDERED that the exemptions to the registration requirements provided by N.J.S.A. 49:3-56(b), N.J.S.A. 49:3-56(c) and N.J.S.A.49:3-56(g) are hereby denied.

Claimants allege that Mr. Diaz misrepresented guaranteed payments of interest, violated suitability requirements, falsified liquid and net worth information, inflated income, guaranteed returns, and forged or cause to be forged certain blank account documentation beginning in 2003.

$144,712.00

$86,450.00

Diaz was named in a customer complaint that asserted the following causes of action: damages arising from suitability, fraud, negligent misrepresentation and omission, violation of FINRA rules and Blue Sky laws, lack of supervision, and respondeat superior.

$2,400,000.00

This award has not been paid by or on behalf of Anthony Diaz as of April 30, 2018.

Claimants allege Mr. Diaz misrepresented guaranteed payments of interest, violated suitability requirements, falsified liquid and net worth information, inflated income, and misrepresented certain financial documentation beginning in 2007.

$187,840.00

$114,265.00

Customer alleges former advisor of SII sold him unsuitable DPP Investment

$50,000.00

$10,500.00

FINRA

Respondent Diaz failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Letter

Suspension

any capacity

N/A

11/3/2015

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Diaz is suspended on November 3, 2015 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

CLIENTS ALLEGE MULTIPLE BDS ALLOWED REPRESENTATIVE TO INVEST IN HIGH COMMISSIONED, UNSUITABLE, ILLIQUID PRODUCTS, INCLUDING A-SHARE MUTUAL FUNDS.

$500,000.00

CLAIMANTS ALLEGE MISREPRESENTATION, BREACH OF FIDUCIARY DUTY, NEGLIGENCE, AND UNSUITABILITY REGARDING THEIR PURCHASE OF VARIABLE ANNUITIES AND DPPS BETWEEN LATE 2005 AND 2009.

$100,000.00

$60,000.00

PENNSYLVANIA CONTACT: COUNSEL JACK CHIAPPETTA (412)-565-3646

ANTHONY DIAZ (RESPONDENT) ENGAGED IN DISHONEST OR UNETHICAL PRACTICES IN THE SECURITIES BUSINESS AND TOOK UNFAIR ADVANTAGE OF PA CUSTOMERS, AND HAS IN CONNECTION WITH THE OFFER, SALE OR PURCHASE OF A SECURITY IN PA, DIRECTLY OR INDIRECTLY EMPLOYED A DEVICE, SCHEME OR ARTIFICE TO DEFRAUD, AND MADE UNTRUE STATEMENTS OF MATERIAL FACT OR OMITTED TO STATE A MATERIAL FACT NECESSARY IN ORDER TO MAKE THE STATEMENTS MADE, IN THE LIGHT OF THE CIRCUMSTANCES UNDER WHICH THEY WERE MADE, NOT MISLEADING. IN DOING SO, RESPONDENT HAS ENGAGED IN ACTS, PRACTICES OR COURSES OF BUSINESS WHICH OPERATED OR WOULD OPERATE AS A FRAUD OR DECEIT UPON PA RESIDENTS, AND INDUCED OR ATTEMPTED TO INDUCE THE PURCHASE OR SALE OF SECURITIES BY MEANS OF A MANIPULATIVE, DECEPTIVE, OR FRAUDULENT SCHEME.

CONSENT AGREEMENT AND ORDER

Bar (Permanent)

ALL CAPACITIES

PERMANENT

6/10/2015

Monetary Penalty other than Fines

$10,000.00

Revocation

THE PENNSYLVANIA DEPARTMENT OF BANKING AND SECURITIES HEREBY PERMANENTLY REVOKES THE AGENT REGISTRATION OF ANTHONY DIAZ.

FROM 6/2005 UNTIL 4/2009 AT FIRST ALLIED RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, GUARANTEED RETURNS, AND FORGED OR CAUSED TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. FURTHERMORE, DIAZ MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANTS'DECISION TO INVEST.

$1,021,519.90

$218,326.00

CUSTOMERS ALLEGE THE RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, GUARANTEED RETURNS, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. ALSO ALLEGE RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANTS' DECISION TO INVEST.

$84,823.24

$12,028.00

FROM 2007 TO 2013, CLAIMANTS ALLEGE RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, GUARANTEED RETURNS, AND FORGED OR CAUSED TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION IN ADDITION TO RECOMMENDING CERTAIN UNSUITABLE STOCKS. CLAIMANTS ALSO ALLEGE RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANTS' DECISION TO INVEST.

$125,878.57

$29,318.00

FROM 2007-2013, CLAIMANTS ALLEGE RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, GUARANTEED RETURNS, FORGED OR CAUSED TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION, AND CAUSED US TO IMPROPERLY SIGN AND EXECUTE ACCOUNT DOCUMENTS. CLAIMANTS ALSO ALLEGE RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANTS' DECISION TO INVEST.

$112,117.29

$32,325.00

FROM 2005 TO 2010, CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, SOLD UPS STOCK WITHOUT AUTHORIZATION, AND FORGED OR CAUSED TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANT ALSO ALLEGES RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S DECISION TO INVEST.

$3,147,456.29

$140,000.00

IN 2008, CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND MISREPRESENTED CERTAIN FINANCIAL DOCUMENTATION. CLAIMANT ALSO ALLEGES RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S DECISION TO INVEST.

$52,653.09

$17,500.00

FROM 2006-2010, CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANT ALSO ALLEGES RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S DECISION TO INVEST.

$40,367.36

$10,000.00

RR UNQUALIFIEDLY AND CATEGORICALLY DENIES EACH AND EVERY ALLEGATION MADE AS FALSE, MERITLESS, AND OPPORTUNISTIC.

FROM 2007-2010, CLAIMANTS ALLEGE RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANTS ALSO ALLEGE RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANTS' DECISION TO INVEST.

$581,070.97

$132,000.00

RR UNQUALIFIEDLY AND CATEGORICALLY DENIES EACH AND EVERY ALLEGATION MADE AS FALSE, MERITLESS, AND OPPORTUNISTIC.

REP MISREPRESENTED INVESTMENT, INVESTMENT NOT SUITABLE AND NET WORTH MISREPRESENTED ON ACCOUNT PAPERWORK.

$30,000.00

$10,000.00

FROM 2006-2012, CLAIMANTS ALLEGE RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, GUARANTEED RETURNS, AND ASKED CLAIMANTS TO SIGN BLANK ACCOUNT FORMS, WHICH HE COMPLETED OR CAUSED TO BE COMPLETED WITH CLAIMANTS' PERMISSION. CLAIMANTS ALSO ALLEGE RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANTS' DECISION TO INVEST.

$73,775.45

$18,042.00

RR UNQUALIFIEDLY AND CATEGORICALLY DENIES EACH AND EVERY ALLEGATION MADE AS FALSE, MERITLESS, AND OPPORTUNISTIC.

FROM 2006-2008, CLAIMANTS ALLEGE RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANTS ALSO ALLEGE RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANTS' DECISION TO INVEST.

$544,505.20

$18,000.00

RR UNQUALIFIEDLY AND CATEGORICALLY DENIES EACH AND EVERY ALLEGATION MADE AS FALSE, MERITLESS, AND OPPORTUNISTIC.

FROM 2003-208, CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANT ALSO ALLEGES RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S DECISION TO INVEST.

$183,633.64

$26,061.00

RR UNQUALIFIEDLY AND CATEGORICALLY DENIES EACH AND EVERY ALLEGATION MADE AS FALSE, MERITLESS, AND OPPORTUNISTIC.

IN 2007, CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, AND MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S PARENTS' DECISION TO INVEST.

$34,086.64

$13,030.00

RR UNQUALIFIEDLY AND CATEGORICALLY DENIES EACH AND EVERY ALLEGATION MADE AS FALSE, MERITLESS, AND OPPORTUNISTIC.

FROM 2005-2009, CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANT ALSO ALLEGES RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S DECISION TO INVEST.

$415,533.53

$140,000.00

RR UNQUALIFIEDLY AND CATEGORICALLY DENIES EACH AND EVERY ALLEGATION MADE AS FALSE, MERITLESS, AND OPPORTUNISTIC.

FROM 2008-2014, CLAIMANTS ALLEGE RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, GUARANTEED RETURNS, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANTS ALSO ALLEGE RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANTS' DECISION TO INVEST.

$379,870.49

$166,886.00

RR UNQUALIFIEDLY AND CATEGORICALLY DENIES EACH AND EVERY ALLEGATION MADE AS FALSE, MERITLESS, AND OPPORTUNISTIC.

$26,314.89

Tax

FROM 2009, CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION, AND MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S AND HER REPRESENTATIVES DECISION TO INVEST.

$24,998.84

$18,000.00

I VEHEMENTLY ASSERT MY INNOCENCE TO THESE ALLEGATIONS. I BELIEVE THESE ARE THE WORK OF ONE OR TWO INDIVIDUALS THAT ARE SOLICITING THESE COMPLAINTS. ALL I ASK FOR IS AN OPPORTUNITY TO CLEAR MY NAME.

FROM 2005-2010, CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION, AND MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S DECISION TO INVEST.

$121,741.00

$50,000.00

I VEHEMENTLY ASSERT MY INNOCENCE TO THESE ALLEGATIONS. I BELIEVE THESE ARE THE WORK OF ONE OR TWO INDIVIDUALS THAT ARE SOLICITING THESE COMPLAINTS. ALL I ASK FOR IS AN OPPORTUNITY TO CLEAR MY NAME.

FROM 2002-2010 CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANT ALSO ALLEGES RR SWITCHED MUTUAL FUND SHARES IMPROPERLY, AND MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S DECISION TO INVEST.

$102,685.00

$8,269.00

I VEHEMENTLY ASSERT MY INNOCENCE TO THESE ALLEGATIONS. I BELIEVE THESE ARE THE WORK OF ONE OR TWO INDIVIDUALS THAT ARE SOLICITING THESE COMPLAINTS. ALL I ASK FOR IS AN OPPORTUNITY TO CLEAR MY NAME.

FROM 2003-2010, CLAIMANTS ALLEGE RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANTS ALSO ALLEGE RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANTS' DECISION TO INVEST.

$153,643.99

$40,000.00

I VEHEMENTLY ASSERT MY INNOCENCE TO THESE ALLEGATIONS. I BELIEVE THESE ARE THE WORK OF ONE OR TWO INDIVIDUALS THAT ARE SOLICITING THESE COMPLAINTS. ALL I ASK FOR IS AN OPPORTUNITY TO CLEAR MY NAME.

FROM 2007-2010, CLAIMANT ALLEGES RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANT ALSO ALLEGES RR SWITCHED MUTUAL FUND SHARES IMPROPERLY, AND MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S DECISION TO INVEST.

$137,358.87

$50,000.00

I VEHEMENTLY ASSERT MY INNOCENCE TO THESE ALLEGATIONS. I BELIEVE THESE ARE THE WORK OF ONE OR TWO INDIVIDUALS THAT ARE SOLICITING THESE COMPLAINTS. ALL I ASK FOR IS AN OPPORTUNITY TO CLEAR MY NAME.

FROM 2002-2012, CLAIMANT ALLEGES THAT RR MISREPRESENTED GUARANTEED PAYMENTS OF INTEREST, VIOLATED SUITABILITY REQUIREMENTS BY RECOMMENDING ILLIQUID PRODUCTS, FALSIFIED LIQUID AND NET WORTH INFORMATION, INFLATED INCOME, AND FORGED OR CAUSE TO BE FORGED CERTAIN ACCOUNT DOCUMENTATION. CLAIMANT ALSO ALLEGES RR MADE FALSE STATEMENTS THAT WERE MATERIAL TO CLAIMANT'S DECISION TO INVEST.

$75,069.77

$75,000.00

I VEHEMENTLY ASSERT MY INNOCENCE TO THESE ALLEGATIONS. I BELIEVE THESE ARE THE WORK OF ONE OR TWO INDIVIDUALS THAT ARE SOLICITING THESE COMPLAINTS. ALL I ASK FOR IS AN OPPORTUNITY TO CLEAR MY NAME.

CUSTOMER ALLEGED UNSUITABLE INVESTMENTS IN TWO ILLIQUID DIRECT PARTICIPATION PRODUCTS PURCHASED IN MARCH OF 2006 AND FEBRUARY OF 2008. ALLEGATION MADE IN 2010 REPEATED IN 2014.

$40,000.00

CLIENT COMPLAINT FOR THE SAME ALLEGATIONS WAS DENIED IN 2010, AND AGAIN DENIED IN 2014.

FINRA

DIAZ WAS NAMED A RESPONDENT IN A FINRA COMPLAINT ALLEGING THAT HE DID NOT HAVE A REASONABLE BASIS FOR RECOMMENDING THAT CUSTOMERS MAKE VARIABLE ANNUITY EXCHANGES. THE COMPLAINT ALLEGES THAT DIAZ FAILED TO MAKE AN INDIVIDUALIZED ASSESSMENT OF THE ADVANTAGES AND DISADVANTAGES OF THE RECOMMENDED EXCHANGES AND FAILED TO UNDERSTAND THE FEATURES OF THE VARIABLE ANNUITY PRODUCT. THE COMPLAINT ALSO ALLEGES THAT DIAZ FALSIFIED OR CAUSED THE FALSIFICATION OF THE REPORTED NET WORTH OF CUSTOMERS IN ORDER TO MAKE IT APPEAR THAT THEY SATISFIED THE MINIMUM NET WORTH REQUIREMENTS FOR CERTAIN ALTERNATIVE INVESTMENTS OR THE PROHIBITIONS AGAINST INVESTING MORE THAN 10 PERCENT OF A CUSTOMER'S ASSETS INTO A SINGLE ILLIQUID PRODUCT. DIAZ MISLED OR ATTEMPTED TO MISLEAD HIS MEMBER FIRMS AND THE ALTERNATIVE INVESTMENT PRODUCT ISSUERS TO BELIEVE THAT THESE CUSTOMERS WERE ELIGIBLE TO PURCHASES THE INVESTMENTS UNDER THE TERMS ESTABLISHED, WHEN IN FACT THEY WERE NOT. DIAZ ATTEMPTED TO INDUCE AN INSURANCE COMPANY TO TRANSFER A CUSTOMER'S VARIABLE ANNUITY TO HIS CONTROL BY ALTERING OR CAUSING THE ALTERATION OF THE SIGNATURE DATE ON A TRANSFER AUTHORIZATION FORM. THE COMPLAINT FURTHER ALLEGES THAT DIAZ INTENTIONALLY OR RECKLESSLY MADE UNTRUE STATEMENTS OF MATERIAL FACT BY FALSELY TELLING FIVE CUSTOMERS THAT ONE OR MORE OF THE ALTERNATIVE INVESTMENTS WERE GUARANTEED TO PAY A SPECIFIC RATE OF RETURN AND TELLING TWO CUSTOMERS THAT THE INVESTMENTS WERE GUARANTEED. THIS CONDUCT VIOLATED SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, NASD RULE 2120 AND FINRA RULE 2020. IN ADDITION, THE COMPLAINT ALLEGES THAT DIAZ FALSIFIED HIS FIRM'S BOOKS AND RECORDS BY CREATING VARIABLE ANNUITY SWITCH FORMS WITH FALSE REASONS FOR THE EXCHANGES. DIAZ FALSIFIED OR CAUSED THE USE OF FALSIFICATION OF NET WORTH, INCOME, ASSETS, AND/OR RISK TOLERANCE INFORMATION FOR NINE CUSTOMERS, AND FORGED THE SIGNATURE OF ONE CUSTOMER. MOREOVER, THE COMPLAINT ALLEGES THAT DIAZ MADE UNAUTHORIZED TRADES IN THE ACCOUNTS OF CUSTOMERS. FURTHERMORE, THE COMPLAINT ALLEGES THAT DIAZ, FIRED FROM FOUR FIRMS, ROUTINELY ENGAGED IN EFFORTS TO MISLEAD HIS CUSTOMERS INTO BELIEVING THAT HE HAD LEFT FIRMS VOLUNTARILY, BOTH THROUGH AFFIRMATIVE STATEMENTS AND THROUGH HIS RESPONSE TO QUESTIONS ABOUT THE CIRCUMSTANCES UNDER WHICH HE LEFT THE FIRMS.

Decision & Order of Offer of Settlement

Bar (Permanent)

All Capacities

5/27/2015

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, DIAZ CONSENTED TO THE SANCTION AND TO THE ENTRY OF FINDINGS THAT HE INDUCED SEVERAL CUSTOMERS TO ENTER INTO VARIABLE ANNUITY EXCHANGES, OFTEN SUBJECT TO SIGNIFICANT SURRENDER CHARGES, WITHOUT A REASONABLE BASIS FOR RECOMMENDING THOSE EXCHANGES. DIAZ DID NOT CONDUCT ANY QUANTITATIVE ANALYSIS OF THE FINANCIAL BENEFIT OR DETRIMENT OF THE EXCHANGES TO HIS CUSTOMERS. DIAZ FAILED TO MAKE AN INDIVIDUALIZED ASSESSMENT OF THE ADVANTAGES AND DISADVANTAGES OF THE RECOMMENDED EXCHANGES, AND ALSO FAILED TO UNDERSTAND THE FEATURES OF THE VARIABLE ANNUITY PRODUCT. THE FINDINGS STATED THAT DIAZ FALSIFIED OR CAUSED THE FALSIFICATION OF THE REPORTED NET WORTH OF CUSTOMERS IN ORDER TO MAKE IT APPEAR THAT THEY SATISFIED THE MINIMUM NET WORTH REQUIREMENTS FOR CERTAIN ALTERNATIVE INVESTMENTS OR ISSUER- AND STATE-IMPOSED PROHIBITIONS AGAINST INVESTING MORE THAN 10 PERCENT OF A CUSTOMER'S ASSETS INTO A SINGLE ILLIQUID PRODUCT. DIAZ MISLED OR ATTEMPTED TO MISLEAD HIS MEMBER FIRMS AND THE ISSUERS OF THE PRODUCTS INTO ALLOWING THESE CUSTOMERS TO PURCHASE INVESTMENTS FOR WHICH THEY WERE INELIGIBLE UNDER THE TERMS ESTABLISHED BY THE ISSUERS AND BY THE STATE OF PENNSYLVANIA, IN WHICH ALL OF THE CUSTOMERS RESIDE. IN ADDITION, DIAZ ATTEMPTED TO INDUCE AN INSURANCE COMPANY TO TRANSFER A CUSTOMER'S VARIABLE ANNUITY TO HIS CONTROL BY ALTERING OR CAUSING THE ALTERATION OF THE SIGNATURE DATE ON A TRANSFER AUTHORIZATION FORM. THE FINDINGS ALSO STATED THAT DIAZ INTENTIONALLY OR RECKLESSLY MADE UNTRUE STATEMENTS OF MATERIAL FACT BY FALSELY TELLING FIVE CUSTOMERS THAT ONE OR MORE OF THE ALTERNATIVE INVESTMENTS WERE GUARANTEED TO PAY A SPECIFIC RATE OF RETURN, AND BY TELLING TWO CUSTOMERS THAT THE INVESTMENTS WERE GUARANTEED. THIS CONDUCT VIOLATED SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, NASD RULE 2120 AND FINRA RULE 2020. THE FINDINGS ALSO INCLUDED THAT DIAZ FALSIFIED HIS MEMBER FIRM'S BOOKS AND RECORDS BY CREATING VARIABLE ANNUITY SWITCH FORMS WITH FALSE REASONS FOR THE EXCHANGES. DIAZ FALSIFIED OR CAUSED THE USE OF FALSIFICATION OF NET WORTH, INCOME, ASSETS AND/OR RISK TOLERANCE INFORMATION FOR NINE CUSTOMERS, AND ALTERED OR CAUSED THE ALTERATION OF THE DATE A CUSTOMER SIGNED A TRANSFER AUTHORIZATION. DIAZ OR SOMEONE WORKING AT HIS DIRECTION CREATED A FIRM'S SECURITIES INVESTOR PROFILE QUESTIONNAIRE FOR A CUSTOMER WITHOUT HER PARTICIPATION, FORGED HER SIGNATURE ON THE DOCUMENT AND WRONGLY DATED IT. FINRA FOUND THAT DIAZ MADE UNAUTHORIZED TRADES IN CUSTOMERS' ACCOUNTS. FINRA ALSO FOUND THAT DIAZ, FIRED FROM FOUR FIRMS, ROUTINELY ENGAGED IN EFFORTS TO MISLEAD HIS CUSTOMERS INTO BELIEVING THAT HE HAD LEFT THOSE FIRMS VOLUNTARILY, BOTH THROUGH AFFIRMATIVE STATEMENTS AND THROUGH HIS RESPONSES TO QUESTIONS ABOUT THE CIRCUMSTANCES UNDER WHICH HE LEFT THE FIRMS.

MR. DIAZ VEHEMENTLY DENIES THE ALLEGATIONS IN THE COMPLAINT AND INTENDS TO VIGOROUSLY DEFEND HIMSELF IN THIS PROCEEDING.

CLIENT ALLEGES THEY INSTRUCTED REP TO INVEST IN A QUALIFIED ANNUITY. REP PURCHASED A NON-QUALIFIED ANNUITY.

$36,917.00

$31,000.00

$22,698.47

Tax

MR. DIAZ AND HIS ACCOUNTANT BELIEVE THIS LIEN WAS PLACED IN ERROR AS A RESULT OF ERRONEOUS 1099'S HAVING BEEN ISSUED BY COMPANIES WITH WHICH MR. DIAZ WAS FORMERLY ASSOCIATED. THEY ARE SEEKING TO RESOLVE AND REMOVE THIS LIEN.

CLAIMANTS ALLEGE THAT MR. DIAZ ENGAGED IN NEGLIGENCE, MISREPRESENTATION, OMISSION, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT, AND UNSUITABILITY IN CONNECTION WITH CERTAIN INVESTMENT RECOMMENDATIONS

$323,096.00

$219,936.80

The Award has not been paid.

MR. DIAZ BELIEVES THAT THE ARBITRATION AWARD WAS UNSUPPORTED AND IMPROPER, AND HAS FILED A TIMELY MOTION TO VACATE THE ARBITRATION AWARD IN STATE COURT IN PENNSYLVANIA

SANDLAPPER SECURITIES, LLC

Discharged

DURING AN INTERNAL INVESTIGATION IT WAS DISCOVERED THAT THE REGISTERED REPRESENTATIVE WAS SOLICITING SALES OF ANNUITIES TO CLIENTS AND WAS NOT APPOINTED WITH THE ANNUITY COMPANIES TO SELL THE ANNUITIES. THE REPRESENTATIVE WAS HAVING CLIENTS COMPLETE THE ANNUITY CONTRACTS AND GIVING THE PAPERWORK TO THE PRINCIPAL IN HIS OFFICE TO SIGN AS THE SELLING AGENT.

SANDLAPPER HAD PRIOR KNOWLEDGE THROUGH WRITTEN AND VERBAL COMMUNICATION FROM MR. DIAZ AND MR. DUGGAN HIS OPERATIONS MANAGER REGARDING OFFICE AND SELLING PROCEDURE REGARDING LINCOLN ANNUITY SALES. SANDLAPPER APPROVED ALL LINCOLN APPS SUBMIT AND PAID COMMISSIONS DIRECTLY TO MR. DIAZ. BOTH MR. DIAZ AND MR. DUGGAN ARE LICENSED TO SELL VARIABLE ANNUITIES. BECAUSE MR. DIAZ DID NOT HAVE A SELLING AGREEMENT THOUGH LINCOLN ALL SALES WERE SIGNED BY MR. DUGGAN.

SANDLAPPER SECURITIES LLC

Discharged

DURING AN INTERNAL INVESTIGATION IT WAS DISCOVERED THAT THE REGISTERED REPRESENTATIVE WAS SOLICITING SALES OF ANNUITIES TO CLIENTS AND WAS NOT APPOINTED WITH THE ANNUITY COMPANIES TO SELL THE ANNUITIES. THE REPRESENTATIVE WAS HAVING CLIENTS COMPLETE THE ANNUITY CONTRACTS AND GIVING THE PAPERWORK TO THE PRINCIPAL IN HIS OFFICE TO SIGN AS THE SELLING AGENT.

SANDLAPPER HAD PRIOR KNOWLEDGE THROUGH WRITTEN AND VERBAL COMMUNICATION FROM MR. DIAZ AND MR. DUGGAN HIS OPERATIONS MANAGER REGARDING OFFICE AND SELLING PROCEDURE REGARDING LINCOLN ANNUITY SALES. SANDLAPPER APPROVED ALL LINCOLN APPS SUBMIT AND PAID COMMISSIONS DIRECTLY TO MR. DIAZ. BOTH MR. DIAZ AND MR. DUGGAN ARE LICENSED TO SELL VARIABLE ANNUITIES. BECAUSE MR. DIAZ DID NOT HAVE A SELLING AGREEMENT THOUGH LINCOLN ALL SALES WERE SIGNED BY MR. DUGGAN.

CLIENT ALLEDGES REIT PURCHASED IN NOV 2009 WAS UNSUITABLE.

$17,783.00

$15,000.00

DIAZ BELIEVES THAT THE PRODUCT IS SUITABLE FOR THE CUSTOMER AND THAT HE WILL PREVAIL ON THE COMPLAINT.

RECEIVED LETTER FROM ATTORNEY OF [CUSTOMERS] STATING CLIENTS ARE ALLEGING UNSUITABLE INVESTMENTS AND OMISSIONS OF MATERIAL FACT. BROKER/DEALER SII INVESTMENTS.

$26,616.67

THIS AGREEMENT IS ENTERED INTO FOR SETTLEMENT AND COMPROMISE OF DISPUTED CLAIMS AND SHALL NEVER BE TREATED AS AN ADMISSIONI BY ANY PARTY OF ANY LIABILITY WHATSOEVER OR AS AN ADMISSION BY ANY PARTY OF AN VIOLATION OF THE RIGHTS OF ANY OTHER PARTY OR PERSON, OR THE VIOLATION OF ANY LAW, STATUTE, REGULATION, DUTY OR CONTRACT WHATSOEVER.

KOVACK SECURITIES, INC.

Discharged

FIRM RECEIVED WRITTEN AND VERBAL COMPLAINTS ALLEGING THAT MR. DIAZ ENTERED UNAUTHORIZED TRADES IN THEIR ACCOUNTS.

CLIENT IS ALLEGING SUBSTANTIAL LOSSES IN HIS ACCOUNT DUE TO LACK OF SUITABILITY AND UNAUTHORIZED TRADING BETWEEN THE PERIOD OF 2006 THROUGH 2009.

CLIENT IS ALLEGING CHURNING AND SUITABILITY DURING THE PERIOD 1/28/2008 AND 3/6/2008

$5,969.89

CLIENTS ALLEGE CHARGES FOR DOING BUSINESS WERE MISREPRESENTED AND DO NOT FEEL THEY WERE TREATED HONESTLY.

$10,000.00

CLIENT FREE LOOKED ANNUITY CONTRACT AND SII REVERSED RECENT LP TRANSACTIONS TO THE CLIENT SATISFACTION

SII INVESTMENTS, INC.

Discharged

VIOLATED THE FIRM'S PROHIBITION AGAINST UNAUTHORIZED TRADING.

THE CLIENT AND BROKER DISAGREE ABOUT AUTHORIZATION TO REINVEST EXCESS CASH THAT WAS INITIALLY RAISED TO PAY TAXES AND BILLS. ANTHONY HAD A PHONE CALL WITH THE CLIENT ABOUT THE IDLE CASH AND WAS SUBSEQUENTLY DIRECTED TO REINVEST THE FUNDS; THE CLIENT NOW BELIEVES THAT SHE DID NOT SAY TO DO SO.

CLIENT IS ALLEGING: 1) THERE WERE ERRORS MADE IN THE TRANSFER OF QUALIFIED FUNDS TO UNQUALIFIED ACCOUNTS; 2) A "WASH SALE" OCCURED IN ACCOUNT; 3) INABILITY TO ACCOUNT FOR CURRENT VALUE OF EACH ACCOUNT, INCLUDING $3,024 UNACCOUNTED FOR IN REIT ACCOUNT. THE ACTIVITY TOOK PLACE FROM 12/01/2007 TO 04/16/2009.

$100,000.00

HIS MAIN COMPLAINT CONCERNS THE ALBRIDGE SYSTEM. THE REPORTING GIVEN TO ALBRIDGE WAS INCORRECT. FOR EXAMPLE, THE REPORTING OF THE INLAND AMERICAN REAL ESTATE TRUST ASSET PURCHASED. SINCE THE FUNDS WERE FROM HIS IRA, WE PURCHASED THE ASSET WITHIN HIS IRA. BEAR STEARNS, NOW JPMORGAN, REPORTED THE COST AS $1.00/SHARE INSTEAD OF $10.00/SHARE. BECAUSE OF THIS, WHEN THE CLIENT ACCESSED HIS IRA ACCOUNT ON ALBRIDGE, IT SHOWED THE CLIENT OWNED ONLY $2,336.00 OF THE ASSET AND NOT $23,360. HIS OTHER COMPLAINT WAS HIS 59 SHARES OF EXELON (EXC) STOCK. HE STATED WE PLACED THE STOCK IN HIS IRA. WE TRANSFERRED THE STOCK INTO AN INDIVIDUAL ACCOUNT IN HIS NAME. FINALLY, ANOTHER COMPLAINT DEALT WITH MARGIN ON HIS ACCOUNT. OUR OFFICE NEVER PLACED MARGIN ON HIS ACCOUNT. WE DO NOT KNOW WHY THE REPORTING ON THE ALBRIDGE SYSTEM SHOWED MARGIN ON THEIR ACCOUNT. OUR OFFICE HAD TWO OR MORE CONFERENCE CALLS WITH THE CLIENT AND SHELLY MCDADE FROM FIRST ALLIED CONCERNING THESE ISSUES. SHELLY INFORMED HIM SHE REMOVED OR DELETED THE MARGIN BUT IT WOULD APPEAR UNDER HISTORICAL DATA. UNFORTUNATELY, WE CANNOT CONTROL ANOTHER COMPANY'S SYSTEM.

MISREPRESENTATION

$10,678.00

CLIENT ALLEGES MISREPRESENTATION & NOT FULFILLING FIDUCIARY RESPONSIBILITIES FROM 12/9/2005 TO 6/22/2006.

$12,000.00

MISREPRESENTATION FROM 11/2003-11/2005

$16,230.00

CLIENT ALLEGES FORGERY.

CLIENT ALLEGES UNAUTHORZIED TRADING. NO COMPENSATORY DAMAGES CLAIMED, BUT APPEAR TO BE GREATER THAN $5000.

EDWARD JONES

Discharged

PROVIDE INACCURATE INFORMATION TO FIELD SUPERVISOR

RESPONDED TO FIELD SUPERVISOR "ABOUT 1.5 TO 2 YEARS AGO" IN REGARD TO A DFA FILED AGAINST ME BY MY EXWIFE. THEY WANTED EXACT INFORMATION WHICH WAS 9 MONTHS INSTEAD OF 1.5 TO 2 YEARS. THIS WAS NOT RELATED TO CLIENTS - THIS WAS PERSONAL REGARDING THE DIVORCE.