- June 16, 2026
- Fenix Securities
The Wolper Law Firm is investigating FINRA member brokerage firm, Fenix Securities, LLC, for allowing unregistered individuals, presenting themselves as legitimate Financial Advisers, to trade securities in customer accounts.
In October 2024, FINRA imposed sanctions against Fenix Securities for this misconduct. FINRA determined that Fenix Securities violated FINRA Rule 1210 (requires the registration of individuals who trade securities in customer accounts), FINRA Rule 2010 (requires brokerages to act with commercial honor and equitable principles of trade), FINRA Rule 2040 (prohibits the payment of transaction-based compensation to unregistered persons) and FINRA Rule 3110 (requires the implementation of a reasonable system of supervision). The predicate facts for the FINRA sanction and findings of rule violations was that Fenix Securities “permitted foreign individuals to conduct a securities business using the firm’s systems when they were not registered with FINRA in any capacity.”
For a copy of the FINRA Sanction, click here.
The Wolper Law Firm has filed a FINRA arbitration claim on behalf of a former customer of Fenix Securities, who was victimized by one of these unregistered Financial Advisers. The unregistered Financial Adviser was Jorge Chacin. Jorge Chacin traded high-risk call/put options and structured notes within the customer’s account, resulting in a near complete loss of principal. Moreover, it is alleged that Jorge Chacin prepared and provided the customer with false account statements, reflecting inflated account values, in order to conceal the losses.
The FINRA Sanction Against Fenix Securities
Fenix Securities has a presence in the Latin American market and, from 2016-2024, engaged “finders” to identify and recruit customers within those foreign markets. Once the foreign customers became clients of the Fenix Securities, Fenix allowed the solicitors to meet with clients, formulate investment plans, render investment advice and buy and sell securities. Fenix Securities paid commissions and/or referral fees to these unregistered persons.
Fenix Securities operated its business in violation of the securities laws as well as FINRA rules. All industry participants that offer investment advice and/or buy and sell securities are required to have the appropriate securities license and have that license held with either a FINRA member brokerage firm or, as applicable, an SEC registered Investment Adviser. During a routine FINRA audit, FINRA identified this misconduct and eventually sanctioned Fenix Securities.
In October 2024, Fenix entered into a Letter of Acceptance Waiver and Consent with FINRA (i.e. an agreed sanction), which prohibits them from “denying, directly or indirectly, any finding in this AWC or create the impression that the AWC is without factual basis.” Specifically, FINRA determined that Fenix Securities hired 47 unregistered persons to solicit clients and render investment advice to retail securities customers. FINRA further found that Fenix Securities paid referral fees and/or commissions to these same unregistered persons. Lastly, FINRA found that Fenix Securities failed to supervise these unregistered persons, allowing them full access to Fenix Securities’ software and trading platform and the ability to trade in customer accounts. This conduct violated the following FINRA Rules, resulting in the payment of a fine in the amount of $250,000, plus other remedial sanctions.
In addition to the monetary fine, FINRA determined that Fenix Securities violated the following FINRA Rules.
- FINRA Rule 1210: Requires “person engaged in the investment banking or securities business of a member shall be registered with FINRA as a representative or principal…”
- FINRA Rule 2010: Requires FINRA Members and Associated Persons to “observe the high standards of commercial honor and just and equitable principles of trade.”
- FINRA Rule 2040: Prohibits FINRA Member firms from paying transaction-based compensation to unregistered persons.
- FINRA Rule 3110: Requires Member firms to maintain a reasonable system of supervision designed to achieve compliance with securities laws.
If I am an Investor, What Avenues of Recovery do I have?
Customers of Fenix Securities that experienced investment losses due to transactions placed by unregistered Financial Advisers have the opportunity to bring a claim in FINRA arbitration. If the customer’s claims can be proven, they may be entitled to recovery. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled more than 1,000 securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.
If you have lost money with Fenix Securities, contact Matt Wolper for a free, confidential consultation, to determine your options for recovery. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.
Attorney Matthew Wolper
Matt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]