CLIENTS ALLEGED FA USED FUNDS DEPOSITED IN THEIR MORGAN STANLEY ACCOUNT TO PURCHASE INVESTMENTS AWAY FROM MORGAN STANLEY 2019

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission (the "Commission"), for its Complaint against Jesus Rodriguez ("Rodriguez" or "Defendant"), alleges that From approximately 2014 through 2021 (the "Relevant Period"), Rodriguez engaged in a fraudulent scheme to misappropriate more than $3.4 million from the accounts of at least ten investors (the "Investors") while he served as their registered representative and/or investment adviser representative at a large financial institution dually-registered with the Commission as a broker-dealer and investment adviser. Rodriguez carried out his misappropriation scheme by initiating fraudulent disbursements of funds primarily through unauthorized ACH transfers, wire transfers, and cash journal transfers to other accounts at the firm. In a number of instances, Rodriguez misappropriated from the Investors' accounts by incurring unauthorized indebtedness collateralized by their securities accounts. In other instances, Rodriguez sold securities from Investors' accounts shortly before misappropriating all or part of the sales proceeds. Rodriguez was also an investment adviser to three of the defrauded Investors and he breached his fiduciary duties to them by misappropriating their funds and/or by making false statements to them. By reason of the foregoing, Rodriguez, directly or indirectly, singly or in concert, has violated and, unless enjoined, will again violate Exchange Act Section 10(b) and Rule 10b-5 thereunder and Sections 206(1) and (2) of the Advisers Act.

Client's attorney alleges, inter alia, forgery and misappropriations of funds from the client's account from 2014 - 2021.

$2,845,953.00

$2,542,784.37

CLIENT ALLEGES, INTER ALIA, THAT FUNDS WERE FRAUDULENTLY TRANSFERRED OUT OF HIS ACCOUNT 2016-2021

CLIENT ALLEGES THAT BOND PURCHASES WERE UNSUITABLE DAMAGES UNSPECIFIED 2018

Complainant verbally alleges fraudulent activity in her legacy Express Credit Line account from November 1, 2018 to August 31, 2020.

$508,447.90

Client allege, inter alia, that funds were misappropriated from his accounts from March 19, 2014 to March 26, 2020.

$334,326.07

CLIENTS ALLEGE FUNDS WERE MISAPPROPRIATED FROM THEIR ACCOUNT 2019 -2021 ALLEGED DAMAGES UNSPECIFIED

$280,871.53

CLIENT ALLEGED THAT THERE WERE FUNDS MISAPPROPRIATED FROM THEIR ACCOUNT DURING THE PERIOD DEC 2020 TO JUNE 2021. DAMAGES UNSPECIFIED

$102,286.62

FINRA

Without admitting or denying the findings, Rodriguez consented to the sanction and to the entry of findings that he refused to provide information and documents requested by FINRA during the course of its investigation of a Form U5 filed by his member firm. The findings stated that the U5 disclosed that Rodriguez had voluntarily resigned a month earlier following allegations regarding his use of client line of credit for his personal benefit.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All capacities

Indefinite

11/29/2021

CLIENT ALLEGED THAT THERE WERE FRAUDULENT WITHDRAWALS FROM HIS ACCOUNT 2019 DAMAGES UNSPECIFIED

CLIENT ALLEGES, INTER ALIA, THAT FUNDS WERE MISAPPROPRIATED FROM THEIR ACCOUNTS AND THAT THERE WERE UNAUTHORIZED MUTUAL FUND TRADES AS WELL 2020-2021 DAMAGES UNSPECIFIED

$246,929.79

CLIENT ALLEGED THAT THERE WERE UNAUTHORIZED WITHDRAWALS OF FUNDS FROM HER ACCOUNT 2020-2021

$266,000.00

$245,829.40

CLIENT ALLEGED, INTER ALIA, THAT FUNDS WERE WITHDRAWN FROM THEIR ACCOUNT WITHOUT THEIR KNOWLEDGE 2017-2020

$376,532.96

CLIENT ALLEGES FUNDS WERE MISAPPROPRIATED FROM HER ACCOUNT IN MARCH 2020

$28,000.00

$30,470.00

MORGAN STANLEY

Voluntary Resignation

Allegations regarding registered representative's use of client line of credit for his personal benefit.

Clients allege, inter alia, that the FA used their line of credit for his personal benefit. 2017 - 2021

$61,431.00

$6,200.00