Broker Swindles Recently Widowed Woman at the Wake of Her Husband, According to Securities Regulators

Eduardo Guillermo Diaz was barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”) in connection with claims that he converted his client’s funds and borrowed money from the client.

Diaz befriended his client before the death of the client’s husband, and at her husband’s wake, Diaz approached her and stated that she would take care of her finances, according to FINRA. Diaz then opened a non-discretionary brokerage account for his client at NEXT Financial and encouraged his client to deposit the death benefit she received from her husband’s life insurance policy into the account, according to FINRA.

Diaz allegedly made a number of untrue statements and omissions to encourage his client to make an investment in a company he controlled that purportedly owned five rental properties. The investment was to be used to refinance and remodel the properties, however the company did not own any properties and had no rental properties, according to FINRA. Rather than using the money invested by the client for the purposes he had represented to her, Diaz converted $126,000 of her funds, according to FINRA.

After the client’s initial investment in Diaz’s company, Diaz continued to make untrue statements to his client to extract more money from her – approximately $365,000, according to FINRA. Diaz also borrowed money from his client, and in order to generate the money Diaz solicited from his client, he sold securities out of his client’s non-discretionary brokerage account at NEXT Financial without the client’s authorization, according to FINRA.

Diaz consented to his barring from the securities industry without denying or admitting FINRA’s factual findings.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.

Peiffer Wolf (1311 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.