SunTrust Settles Customers' Claims Of Unauthorized Trading

Daniel Antonio Pacheco (CRD#: 5278626), who was a prior financial advisor of SunTrust Investment Services, Inc. in Hollywood, Florida from January 19, 2016 to April 14, 2016, has disclosed on Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that a customer filed a FINRA Arbitration #17-02124 on September 13, 2017, asserting a claim against Pacheco of unsuitability.

The customer indicated that Pacheco misrepresented the customer’s suitability profile – documentation which generally refers to an investor’s risk tolerance, investment objectives, and financial status. The customer asserted that Pacheco also placed the customer in equities, including common or preferred stock, that were not suitable for the customer. SunTrust and the customer agreed for the customer to be paid $35,000.00 to settle the claim.

At least three other SunTrust customers have come forward disputing Pacheco’s sales practices, according to Pacheco’s FINRA BrokerCheck file. In one customer dispute filed on December 14, 2015, a customer alleged that Pacheco made stock trades in the customer’s account without the customer’s permission. On December 18, 2015, SunTrust settled that customer’s claim of unauthorized trading.

In another customer complaint filed January 15, 2016, Pacheco was accused of providing the customer written confirmation that the customer’s account value would not fall below $485,000.00. Apparently, the promise made by Pacheco was left unfulfilled. The customer also alleged that Pacheco was supposed to have contacted the customer if the customer sustained more than three percent losses on mutual funds and equity investments; however, Pacheco failed to communicate with the customer. On February 24, 2016, SunTrust settled the customer’s dispute by paying $35,000.00 in damages.

Another SunTrust customer filed a complaint on January 22, 2016, claiming that Pacheco made unauthorized trades of stock in the customer’s account. Pacheco was additionally accused of buying securities for the customer’s account that did not match the customer’s risk tolerance. Records show that the customer was provided $28,740.65 by SunTrust on April 18, 2016 to resolve the customer’s allegations of unsuitability and unauthorized trading.

Investors who have lost money by investing with SunTrust financial advisors such as Daniel Antonio Pacheco are welcome to contact the Law Office of Peter M. Spett at (561) 463-2799 for a free consultation regarding their legal rights and claims. Peter M. Spett is experienced at recovering investor losses.