• May 16, 2024
• Wells Fargo Advisors

Mario Everildo Rivero Jr. (CRD#: 5856503) is a previously registered broker and investment advisor.

Broker’s Background

He entered the securities industry in 2015 and previously worked with Wells Fargo Clearing Services, LLC, and LPL Financial LLC.

Allegations of Misconduct

According to publicly available records released by the United States Securities and Exchange Commission (SEC), in March 2023, the SEC deemed it appropriate to institute public administrative proceedings against Mario E. Rivero. The SEC found that Rivero, age 39, was a registered representative and investment adviser representative of Wells Fargo Clearing Services, LLC from May 2010 until September 2020, and of LPL Financial, LLC from September 2020 to June 2021. Rivero held FINRA series 6, 7, 63 and 68 licenses before being barred by FINRA in June 2021.

On February 2, 2023, Rivero pled guilty to violations of 18 U.S.C. § 1343, 18 U.S.C. § 2; 15 U.S.C. §§ 78j(b) & 78ff, and 17 C.F.R. § 240.10b-5 thereunder before the United States District Court for the District of New Jersey in United States v. Rivero, No. 22 Crim. 11085 (D.N.J.) Rivero has not yet been sentenced in that matter. On March 14, 2022, the Commission filed a complaint against Rivero in SEC v. Rivero, Civil Action No. 22-01360 (ZNQ-DEA), in the Federal District Court of the District of New Jersey. On March 6, 2023, the court entered an order permanently enjoining Rivero, by consent, from future violations of Sections 17(a)(1) and 17(a)(2) of the Securities Act of 1933; Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and Sections 206(1) and (2) of the Investment Advisers Act of 1940. The Commission’s complaint alleged that between at least July 2018 and November 2020, Rivero convinced at least five of his clients and customers to transfer funds from their accounts to entities with which Rivero was associated. Rivero falsely told his victims that the purpose of these fund transfers was so that he could make various investments on their behalf. However, Rivero misappropriated approximately $680,000 from the entities that received the investor funds which he never disclosed to his clients and customers.

As a result, Mario E. Rivero was indefinitely barred from acting as and associating with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO, as well as participating in any offering of a penny stock.

In addition, Mario E. Rivero has four other disclosures relating to the SEC proceeding above:

• March 2022— “Wells Fargo Advisors reported that they had discovered one of their advisors, Mario E. Rivero, Jr. had been diverting funds to One Prime Financial Solutions, LLC, an entity controlled by Rivero. After obtaining these funds, Rivero utilized said funds for his personal expenses/benefit.” The regulatory proceeding is pending in Alabama.

 

• March 2022—Sanctioned by the SEC: “Plaintiff Securities and Exchange Commission (“Commission”), for its Complaint against Defendant Mario E. Rivero (“Defendant” or “Rivero”), alleges that this case involves a scheme whereby Rivero, a former financial advisor, fraudulently misappropriated at least $680,000 from investment accounts that he handled, including accounts owned by elderly and/or disabled investors. From approximately May 2010 to September 2020, Rivero was employed as a financial advisor for a large financial institution registered with the Commission as a broker-dealer and investment adviser (“Financial Institution A”). In this role, Rivero handled investment accounts for the owners of advisory accounts (“clients”) and the owners of brokerage accounts (“customers”). From approximately September 2020 to June 2021, Rivero was employed as a financial advisor for a different financial institution registered with the Commission as a broker-dealer and investment adviser (“Financial Institution B”). Between at least July 2018 and November 2020 (the “Relevant Period”), Rivero convinced at least five of his clients and customers at Financial Institution A – some of whom over eighty years old and/or disabled – to transfer funds from their investment accounts at Financial Institution A to their own bank accounts and then, from their bank accounts, to entities that Rivero was secretly associated with. Rivero falsely told his victims that the purpose of these fund transfers was so that he could make various investments on their behalf including, in some instances, investments in the stock market. In reality, Rivero siphoned hundreds of thousands of dollars from the entities that received the investor funds for his own benefit. Rivero never disclosed to his clients and customers that he would personally benefit from the fund transfers. In total, Rivero fraudulently induced his clients and customers to make at least $680,000 in such transfers. By virtue of the conduct described herein, Rivero violated Sections 17(a)(1) and 17(a)(2) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act.” The judgment resulted in disgorgement, injunction, and undertaking sanctions, with an amount of $488,978.00.

 

• March 2022—Sanctioned by New Jersey Bureau of Securities resulting in revocation: “RIVERO ENGAGED IN DISHONEST AND UNETHICAL BUSINESS PRACTICES IN THE SECURITIES BUSINESS. RIVERO IS THE SUBJECT OF AN ORDER OF A SELF-REGULATORY ORGANIZATION EXPELLING HIM FROM A SELF -REGULATORY ORGANIZATION.”

 

• June 2021—Barred by FINRA: “On May 3, 2021, FINRA requested, pursuant to FINRA Rule 8210, that Rivero provide documents and information in connection with FINRA’s investigation of the allegations made by Rivero’s former customers. As stated during his counsel’s phone call with FINRA on May 18, 2021, and by this agreement, Rivero acknowledges that he received FINRA’s request and will not produce the information or documents requested at any time. By refusing to produce the information and documents as requested pursuant to FINRA Rule 8210, Rivero violated FINRA Rules 8210 and 2010. B. Respondent also consents to the imposition of the following sanction: a bar from associating with any FINRA member in all capacities.” For a copy of the disciplinary action details, click here.

 

For a copy of Mario E. Rivero’s SEC AdvisorInfo, click here.

 

We Help Investors Recover Investment Losses

FINRA Rule 2150 specifically addresses theft and conversion in a customer account, stating “no member or person associated with a member shall make improper use of a customer’s securities or funds.”  This rule includes any “guarantee” that brokers make to customers in relation to losses incurred in a brokerage account.

 

In addition, FINRA Rule 3240 strictly prohibits a financial advisor from borrowing money from a client absent from unique circumstances, such as a familial relationship between the Financial Advisor and the client.  There is also an exception if the client is a financial institution regularly engaged in the business of lending.  The reason for this prohibition is clear—borrowing money from clients creates an immediate conflict of interest and can potentially lead to theft or conversion of client assets.

 

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.