Financial Advisor Santiago Torres Subject of FINRA Complaint Alleging Misappropriation of Client Funds

• March 21, 2025
• Chase Investment Services

Santiago J Torres, Jr. (CRD#: 5644622) was a previously registered broker and investment advisor.

Broker’s History

He entered the securities industry in 2009 and previously worked with Chase Investment Services Corp; PNC Investments; BB&T Investment Services, Inc.; BB&T Securities, LLC; and Truist Investment Services, Inc.

Allegations of Misconduct

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in January 2025, Santiago Torres was named a respondent in a FINRA complaint alleging that he failed to provide information and documents and failed to appear for on-the-record testimony requested by FINRA as part of an investigation into whether he misappropriated funds and falsified customer documents. The complaint alleges that FINRA opened the investigation after reviewing a Form U4 amendment filed by Torres’ member firm that disclosed a customer complaint alleging that he misappropriated funds from the customer, who was Torres’s wife’s cousin, and other family members. The requested information and documents were relevant to determining whether Torres misappropriated funds from customers and other family members or forged customer documents, and they were necessary for FINRA to complete its investigation. Torres’ testimony was also material to FINRA’s investigation. The regulatory proceeding is still pending.

For a copy of the complaint, click here.

In addition, Santiago Torres has been the subject of three other FINRA Disclosures, which include:

• September 2024— “Allegations of misappropriation of client funds and falsification of client documents/statements.” He was discharged by Truist Investment Services, Inc.
• August 2024—”Client alleges representative misappropriated funds from 10/2018 to 9/2024.” The customer dispute settled for $17,500.00.
• August 2024—“Client alleges representative misappropriated various family member’s funds.” The customer dispute settled for $190,000.00.

For a copy of Santiago Torres’ FINRA BrokerCheck, 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.