A disciplinary action taken by the Financial Industry Regulatory Authority against Greenwood Village, Colorado broker and investment advisor Joe Yanofsky...Read More
Hector Villalta: JP Morgan Broker Suspended Over Outside Business Activity Allegations
A disciplinary action taken by the Financial Industry Regulatory Authority against Culver City, California broker Hector Villalta (CRD#) suspended him over allegations he participated in an undisclosed outside business activity. A representative of JP Morgan Securities, Villalta was suspended for two months and fined $5,000.
According to a Letter of Acceptance, Waiver and Consent () dated November 2018, Hector Villalta was associated with JP Morgan Securities when, between July 2015 and June 2016, he participated in an outside business activity in which he “leased vehicles and referred others to lease vehicles on behalf of a third party company” for which he received compensation totaling about $6,000. FINRA’s findings state that he worked for the company as an independent contractor, leasing a minimum of three luxury cars “either as the primary lessor or as a co-applicant on the lease’ for the company in question, which proceeded to sublease the cars to “persons with poor credit.” Villalta received varying compensation for the vehicles he leased and individuals he referred to the company, according to FINRA, though the total amount was about $6,000.
FINRA’s findings go on to state that he did not notify JP Morgan Securities of his work or receive its approval “until December 2015,” at which point he allegedly requested approval to work for the company in a capacity that involved “test driving, delivering, and storing vehicles,” without disclosing the leasing activities. He also allegedly stated inaccurately on two annual compliance certifications that he had no “new or existing outside business activities to disclose.” FINRA found this conduct to constitute violations of FINRA Rules 3270 and 2010. As a result of the foregoing alleged activities, Hector Villalta was suspended from association with any FINRA member firm in any capacity for two months. He was also ordered to pay a fine of $5,000.
Hector Villalta is currently not registered as a broker or investment advisor. His employment history includes JP Morgan Securities in Culver City and Santa Monica, California, and Chase Investment Services Corporation in Culver City, California. He currently holds no state licenses and has passed three securities industry qualification examinations.