Alejandro Falla (CRD#: 5064828) served as the chief executive and head trader at BAC Florida Investments Corp. in Coral Gables, Florida.
In 2016, FINRA suspended Alejandro Falla for 18 months and fined him $50,000 for a violation of securities law. Investigators found that Mr. Falla charged investors undisclosed markups in fixed income transactions.
In 2017, Mr. Falla had his securities license revoked after he failed to pay the fine. Under FINRA Rule 8230, all fines and monetary sanctions must be paid to the agency/investors in a timely manner.
Trading Violations: Alejandro Falla of BAC Florida Investments Corp.
On September 19th, FINRA announced a settlement with Mr. Falla’s former brokerage firm BAC Florida Investments Corp. (CRD No. 19453). BAC Florida agreed to pay a $100,000 fine and $117,000 in financial restitution to settle a case related to its former head trader Alejandro Falla.
From July of 2013 to June of 2014, BAC Florida was party to a contract with an unnamed registered investment advisor (RIA) firm. Under the terms of this contract, BAC Florida agreed to charge the anonymous firm’s customers no more than 15 basis points on all fixed income transactions.
Following an investigation, FINRA determined that BAC Florida failed to live up to the terms of this contract and thereby violated securities industry rules. Its head trader Alejandro Falla over-billed customers by reporting doctored trading prices. In one example, the RIA firm requested 500 shares of a bond, ideally priced at 100.00. Mr. Falla reported that he obtained a price of 100.125. This was false. In reality, Mr. BAC Florida was able to purchase the shares for 99.95. He doctored the price and pocketed the difference.
The misconduct in this case is a violation of FINRA Rule 5310. Securities industry rules require member firms and registered representatives to use reasonable, good faith efforts to obtain the best market price possible when obtaining securities or financial products for other parties.
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