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Ex-Morgan Stanley Broker Francisco Valenzuela is Named in $500K Investor Claim Alleging Unsuitability

Former Tucson, Arizona Financial Advisor Has Two Pending Complaints on Record

If you suffered losses while working with ex-Morgan Stanley registered representative Francisco Javier Valenzuela, you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover your losses. Valenzuela, who is also a former registered investment advisor, has seven disclosures on his BrokerCheck record, including two pending disputes. 

Our broker negligence attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are looking into customer claims of investment losses they experienced while working with Francisco Valenzuela or any other Morgan Stanley registered representative. If you are one of these investors, call (800) 259-9010 today.

Disclosures in Which Valenzuela Has Been Named

  • October 2020: Alleging unsuitability, excessive trading, and misrepresentations, this claimant is seeking $500K in damages.
  • February 2020: This former customer contends that there was unsuitability between June 2016 and February 2020 involving corporate bond investments.
  • December 2019: The Financial Industry Regulatory Authority (FINRA) suspended Valenzuela for eight months after finding that he willfully didn’t amend a Form U5 to disclose a $150,967 tax lien. He was ordered to pay a $10K penalty.
  • July 2018: FINRA temporarily barred Valenzuela after he didn’t respond to the self-regulatory organization for information.
  • November 2017: This bankruptcy charge was denied.
  • November 2008: This investor fraud claim alleging unsuitability was denied.
  • November 2005: This customer dispute alleging misrepresentations involving a mutual fund purchase was settled for over $12K.

Francisco Valenzuela worked for 21 years in the industry. Before he was a Morgan Stanley broker from 2015 to 2018, he was a registered representative at other broker-dealers, including Merrill Lynch, Pierce, Fenner & Smith, Chase Investment Services, Banc One Securities Corp., Investment Centers of America, Inc., TD Waterhouse Investors Services, Inc., Jack White & Co., and Chatfield Dean & Co.

Brokerage Firms And Their Supervisory Obligations

Broker-dealers must properly supervise their registered representatives and they can be held liable in FINRA arbitration if broker misconduct or negligence by one of their financial advisors causes their customer to suffer significant losses.

This can include a broker making unsuitable investment recommendations or misrepresenting an investment it is making to a customer, including not properly disclosing the risks involved. Pursuing damages against a large brokerage firm is not something that you want to do without experienced FINRA arbitration lawyers by your side.

Other Recent Broker Misconduct Claims Involving Morgan Stanley Advisors 

Francisco Valenzuela is not the only ex- or current Morgan Stanley broker to recently face allegations of wrongdoing by customers. In March 2021, former Morgan Stanley financial advisor Michael Barry Carter was sentenced to five years in prison and three years of supervised release for a 12-year investor fraud in which he stole at least $6.15M from clients. 

Just two months before that, in January, the Securities and Exchange Commission obtained an over $5M final judgment in its case involving barred Morgan Stanley broker Barry Connell, who is accused of misappropriating around that amount from clients. 

Experienced FINRA Arbitration Attorneys Representing Investors Against Large Wall Street Firms

For over 30 years, SSEK Law Firm has represented thousands of institutional and individual investors in their FINRA arbitration claims against broker-dealers, including the largest firms on Wall Street. We have recovered many millions of dollars on behalf of our clients. Call (800) 259-9010 or contact us today so that we can help you explore your legal options.

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