Financial Advisor Efrain Trujillo Suspended by FINRA

Efrain Trujillo (CRD#: 3106482) is a previously registered Broker and Investment Advisor.

Broker’s Background

He entered the securities industry in 1998 and previously worked for Western International Securities, Inc.; Financial West Group; and SRM Securities, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in October 2022, FINRA sanctioned Efrain Trujillo, imposing a civil and administrative penalty/fine of $5,000, and suspending him from all capacities for eight months beginning October 17, 2022 and ending June 16, 2023. The FINRA sanction states, “Without admitting or denying the findings, Trujillo consented to the sanctions and to the entry of findings that he borrowed approximately $335,000 from firm customers without providing prior written notice or obtaining written approval from his member firm. The findings stated that the customers were retail customers who were not immediate family members of Trujillo or in the business of lending money. The amounts of the loans ranged from $5,000 to $50,000, and Trujillo primarily used the funds to pay for personal expenses. Although Trujillo signed promissory notes memorializing the terms, including repayment schedules, for seven of the 15 loans, he did not provide the customers with promissory notes or repayment schedules for the remaining eight loans. To date, Trujillo has repaid nine of the loans, and he is continuing to repay the remaining six. In addition, Trujillo falsely affirmed on compliance questionnaires that he had never received a loan from his customers.”

For a copy of the FINRA sanction, click here.

In addition, Efrain Trujillo has several other disclosures, including the following:

  • January 2022 — “Respondent Trujillo failed to pay fines and/or costs of $8,844.06 in FINRA Case #2017054755208.” According to FINRA, “Pursuant to FINRA Rule 8320, Respondent Trujillo’s FINRA registration is revoked as of the close of business on January 7, 2022 for failure to pay fines and/or costs.” For a copy of the FINRA disciplinary action, click here.
  • October 2021 — “Rep borrowed money from customer.” Efrain Trujillo was discharged by Western International Securities, Inc.
  • November 2020 — “Without admitting or denying the findings, Trujillo consented to the sanctions and to the entry of findings that he failed to supervise registered representatives formally with his member firm, who excessively traded and recommended qualitatively unsuitable trades involving options, low-priced securities, and Non-Traditional Exchange Traded Products (ETPs) in accounts belonging to customers. The findings stated that Trujillo failed to investigate red flags indicative of trading misconduct and take appropriate action in a manner reasonably designed to ensure that the representatives acted in compliance with FINRA rules. A firm compliance principal specifically informed Trujillo of red flags indicative of excessive trading in the accounts of customers. In addition, in the face of information indicative of violative trading practices, Trujillo acted unreasonably by failing to further scrutinize the conduct of the representatives. Trujillo was aware of but failed to investigate and address specific red flags indicating trading misconduct suggestive of excessive trading and qualitatively unsuitable recommendations in violation of FINRA’s suitability rules, including the suitability rules relating to options trading.” Efrain Trujillo was permanently barred by FINRA from acting as any principal, beginning November 17, 2020. FINRA also imposed a civil and administrative penalty/fine of $20,000. For a copy of the FINRA disciplinary action, click here.
  • May 2016 — “Client upset with suitability of recommendations in 2015.” The customer dispute was settled for $45,474.

For a copy of Efrain Trujillo’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.

The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of 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. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt 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]