David Joseph Escarcega – Material False and Misleading Statements

Cleveland stockbroker fraud lawyerDavid Joseph Escarcega Allegedly Made Materially False and Misleading Statements in Connection with Seven Customers’ Purchases of Debentures Totaling Approximately $516,825

David Joseph Escarcega allegedly made materially false and misleading statements in connection with seven customers’ purchases of debentures totaling approximately $516,825, according to a Complaint from FINRA’s Department of Enforcement currently under review by attorneys Alan Rosca and James Booker.

Peiffer Rosca Wolf securities practice lawyers are investigating David Joseph Escarcega alleged materially false and misleading statements.

Investors who believe they may have lost money in activity related to David Joseph Escarcega alleged materially false and misleading statements are encouraged to contact attorneys Alan Rosca or James Booker with any useful information or for a free, no obligation discussion about their options.

Said Complaint further alleges that Escarcega made unsuitable recommendations connected with 12 customers’ purchases of the same debentures totaling approximately $1.5 million, and that he caused Center Street Securities, Inc. to make and preserve inaccurate books and records.

David Joseph Escarcega Barred by a FINRA Hearing Panel and Ordered that He Disgorge $52,270, the Purported Amount of Commissions Escarcega Allegedly Took in Connection with the Transactions Underlying His Purported Misconduct

David Joseph Escarcega, based on the aforementioned alleged misconduct, has been barred and ordered by the FINRA Hearing Panel that he disgorge $52,270, the amount of commissions he purportedly received in connection with the transactions underlying his alleged misconduct, according to the aforementioned Complaint from FINRA’s Department of Enforcement presently being reviewed by attorneys Alan Rosca and James Booker.

What is very important in each finding of alleged misconduct in this case is a so-called debt product- one described by its issuer as involving a purported “a high degree of risk” and that Escarcega allegedly recommended and sold such a product to his customers, the Complaint reports.

Escarcega then allegedly sold these debentures (which he allegedly does not dispute were speculative and involved numerous risks as described in the debentures’ offering documents) by purportedly making misrepresentations to certain customers regarding  and concerning the debentures’ purported safety and by not paying attention to his obligation to recommend suitable securities with respect to other customers, according to the Complaint.

Finally, Escarcega also allegedly made unsuitable recommendations of the debentures to 12 customers when said customers allegedly held conservative investment objectives overall, low risk tolerances, were mostly retired, had an average age of more than 73 years old, and generally had average or limited experience with products such as the debentures, the Complaint states.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of alleged investment fraud and are currently investigating David Joseph Escarcega alleged materially false and misleading statements. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of David Joseph Escarcega alleged materially false and misleading statements may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

Alan Rosca (1214 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


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.