SEC Accuses Former Morgan Stanley Advisor of Defrauding Clients
From the desk of James Eccleston at Eccleston Law
The Securities and Exchange Commission (SEC) has filed fraud charges against Jesus Rodriguez, accusing him of misappropriating nearly $3.5 million from at least 10 brokerage account holders and advisory clients.
Rodriguez, employed as a registered representative and investment adviser representative at Morgan Stanley's El Paso, Texas office from 2014 to 2021, is alleged to have initiated over 250 fraudulent and unauthorized disbursements from the accounts of his clients. The disbursements reportedly were conducted through unauthorized ACH transfers, wire transfers, and cash journal transfers to other accounts at his former firm. Rodriguez, aged 44, faces legal action for his actions during the specified period.
As reported by DI Wire, the SEC claims Rodriguez used the embezzled funds for personal expenses, including paying credit card bills, purchasing automobiles, and supporting his family members. Rodriguez purportedly concealed his misappropriation scheme through deceptive conduct, including fabricating authorizations for transfers and providing false information to his employer.
Terminated by Morgan Stanley in 2021, Rodriguez subsequently was barred from the securities industry by FINRA, and he currently faces criminal prosecution in El Paso. The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and a civil penalty in its legal action against Rodriguez.
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