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Financial Advisor Hector Evangelista Discloses Complaint Regarding Structured Notes

Hector Evangelista (CRD#: 4042150) is a registered Broker and Investment Advisor at Citigroup Global Markets, Inc., in Pembroke Pines, FL.

Broker’s Background

He entered the securities industry in 1999 and previously worked for Wells Fargo Advisors, LLC; and FIrst Union Brokerage Services, 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 August 2022, a customer dispute was filed against Hector Evangelista. The allegation states, “CLIENT COMPLAINED ABOUT THE INVESTMENT STRATEGY RECOMMENDED BY THE REGISTERED REPRESENTATIVE, STATING THAT IT WASN’T WHAT HE REQUESTED, AND EXPRESSED CONCERN THAT ALL THE STRUCTURED NOTES ARE OUT OF THE PROTECTIVE BARRIER WITHOUT GENERATING INCOME. CLIENT STATED THE MONEY WAS SUPPOSED TO BE FOR HIS RETIREMENT. CLIENT ESTIMATED THAT HE WILL NOT RECOVER HIS INITIAL CAPITAL, AND FURTHER ALLEGED THAT THE LOSSES HAVE AFFECTED HIS STANDARD OF LIVING. CLIENT DEMANDED A RETURN OF HIS INITIAL MONEY INVESTED. OCCURRENCE DATES: 6/25/2021 – 8/1/2022. UNREALIZED LOSSES: $439,391.” Damages of $439,391 are requested. The customer dispute is pending.

In addition, Hector Evangelista has been the subject of one customer complaint, including the following:

  • July 2022 — “CLIENT COMPLAINED REGARDING A STRUCTURED NOTE, ALLEGED THAT THE REGISTERED REPRESENTATIVE MISREPRESENTED THE PRODUCT. CLIENT CLAIMED HE TOLD REGISTERED REPRESENTATIVE THAT HE WAS A CONSERVATIVE INVESTOR AND DID NOT WANT ANY RISK IN HIS ACCOUNT. CLIENT NOTICED THE VALUE DEPRECIATING THE FIRST FEW MONTHS OF THE YEAR AND ALLEGED REGISTERED REPRESENTATIVE PROMISED HIM THAT HS ACCOUNT WAS SAFE FROM ANY LOSS. STRUCTURED NOTE MATURED IN JULY AND CLIENT WANTS TO BE CREDITED FOR LOSS. OCCURRENCE DATE: 6/28/2021 – 7/1/2022. ALLEGED LOSS $30,000.” The customer dispute was closed with no action.

For a copy of Hector Evangelista’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.

Structured products, generally, are investment vehicles based on or derived from a single security, a basket of securities, an index, a commodity, a debt issuance and/or a foreign currency. They have a fixed maturity date and are designed to offer specific risk-return tradeoffs, with pre-set formulas for both the potential risk and potential return. However, these calculations are very complex and well beyond the capabilities of most retail investors, making structured products unsuitable for average investors saving for retirement and other goals. Unfortunately, this unsuitability does not stop some brokerages and investment advisors from recommending them, because structured products can bring high commissions and profits to them.

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.

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]