Francisco Javier Valenzuela, Formerly of Morgan Stanley, Named in Two Pending Customer Disputes

One client is seeking $500K in damages for Valenzuela’s alleged misconduct.

Francisco Javier Valenzuela (CRD#: 2786970) was registered as a broker with Morgan Stanley from 2015 to 2018. Previously, Valenzuela was registered as a broker with Merrill Lynch from 2010 until 2015.

Valenzuela has seven disclosures on his BrokerCheck report, one customer dispute filed against Valenzuela was denied.

October 2020 Customer Dispute

• Status: Pending
• Allegations: The customer alleges excessive trading, unsuitable investment recommendations and misrepresentations.
• Damage Amount Requested: $500,000.00

February 2020 Customer Dispute

• Status: Pending
• Allegations: Client’s attorney alleged, inter alia, unsuitability with respect to corporate bond investments – June 2016 to February 2020.

December 2019 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Valenzuela consented to the sanctions and to the entry of findings that he willfully failed to amend his Form U4 to disclose a federal tax lien in the amount of $150,967. The findings stated that during FINRA’s investigation into Valenzuela’s federal tax lien and the circumstances of his termination from his member firm, Valenzuela failed to timely respond to requests for documents and information. The Form U5 disclosed the reason for the termination as management discretion not to implement additional required supervisory procedures.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Civil and Administrative Penalty(ies/Fine(s)
• Amount: $10,000.00
• Sanctions: Suspension
• Registration Capacities Affected: All Capacities 
• Duration: eight months
• Start Date: 1/6/2020
• End Date: 9/5/2020
• Sanctions: The settlement includes a finding that Valenzuela willfully failed to disclose a material fact on a Form U4, and that under section 3(a)(39)(f) of the Securities Exchange Act of 1934 and Article III, Section 4 of the FINRA By-Laws, this omission make him subject to a statutory disqualification with respect to association with a member.

July 2018 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Respondent Valenzuela failed to respond to FINRA request for information.
• Resolution: Letter
• Sanctions: Bar
• Registration Capacities Affected: All Capacities 
• Duration: n/a
• Start Date: 10/23/2018
• End Date: 11/16/2018
• Sanctions: Pursuant to FINRA Rule 9552(h) and in accordance with FINRA’s Notice of Suspension and Suspension from Association letters dated July 20, 2018, and August 13, 2018, respectively, on October 23, 2018, Valenzuela is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity. Bar vacated on November 16, 2018.

November 2017 Financial Event

• Status: Final
• Type: Bankruptcy
• Disposition: Discharged

November 2005 Customer Dispute

• Status: Pending
• Allegations: Customer alleges misrepresentation in connection with the purchase of a mutual fund.
• Damage Amount Requested: $26,687.32
• Settlement Amount: $12,269.77

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Francisco Javier Valenzuela. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.