• March 2, 2024
• Cetera Advisors LLC

Juan Manuel Rascon (CRD#:5631144) is a registered broker and investment adviser at Cetera Investment Services, LLC., in Houston, TX.

Broker’s Background

He entered the securities industry in 2009 and previously worked with Edward Jones; Chase Investment Services Corp.; J.P Morgan Securities LLC; BBVA Compass Investment Solutions, Inc.; and BBVA 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 May 2023, Juan Rascon became the subject of a customer dispute. Allegations include, “Claimant inherited her father’s self-directed brokerage account. In 2015, claimant moved account to firm and pledged the assets to secure a line of credit with firm’s former affiliate bank. Said line of credit was in the name of claimant and her husband (who she has since divorced). Brokerage account was claimant’s sole property under Texas law. Claimant asserts that firm breached its fiduciary duty and failed to make suitable recommendations in allowing claimant to pledge her sole property assets against the joint debt and by allowing her to make equity investments in a self-directed account.” The damage amount requested is $1,000,000 and the customer dispute is still pending.

In addition, Juan Rascon has been the subject of one other customer dispute, which includes:

• July 2014—“ IN JULY, 2013, CUSTOMER PURCHASED THREE CERTIFICATES OF DEPOSIT ISSUED BY THE FIRM’S AFFILIATE BANK FOR $100,000.00 EACH. THE INTEREST PAYMENTS ON THESE CDS ARE LINKED TO THE PERFORMANCE OF A BASKET OF THREE STOCKS. IN ORDER TO RECEIVE AN ANNUAL INTEREST PAYMENT ON THE CDS, THE PRICE OF ALL THREE STOCKS MUST HAVE INCREASED OR REMAINED THE SAME. THE CUSTOMER CLAIMS THAT REPRESENTATIVE (WHO WAS ACTING IN HIS CAPACITY AS AN EMPLOYEE OF THE FIRM’S AFFILIATE BANK IN OFFERING SAID CDS) DID NOT ADEQUATELY DISCLOSE THE TERMS OF THE CDS, DESPITE BEING CLEARLY DISCLOSED ON THE TERM SHEET PROVIDED TO THE CUSTOMER, AND ACKNOWLEDGED IN WRITING BY THE CUSTOMER, AT THE TIME OF THE SALE.” The customer dispute settled for $3,358.70.

For a copy of Juan Rascon’s FINRA  BrokerCheck, click here.

 

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

 

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

 

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

 

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

 

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 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.