Luis Fernando Restrepo Audit (2023) – A Scam or Legit Broker?

Luis Fernando Restrepo  – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).

If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.

Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Luis Fernando Restrepo.

BrokerComplaints.com is currently investigating allegations related to Luis Fernando Restrepo. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.

About Luis Restrepo

Luis Fernando Restrepo is an Investment Adviser. Luis Fernando Restrepo’s Central Registration Depository (CRD) number is 2167380 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2167380.

Click here to download a Detailed Audit Report for Luis Fernando Restrepo.

Luis Fernando Restrepo has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.

Accusations and Disclosures

You can find below, a quick snapshot of Luis Fernando Restrepo’s regulatory actions, arbitrations, and complaints.

DISCLOSURE 1 – 

• Event Date: 7/20/2021
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: 2016047624501
• DocketNumberAAO: 2016047624501
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Restrepo consented to the sanctions and to the entry of findings that he failed to reasonably establish and implement an anti-money laundering (AML) compliance program reasonably designed to detect and cause the reporting of suspicious activity as well as a reasonably designed customer identification program (CIP). The findings stated that this matter originated from FINRA’s cycle examination of Restrepo’s member firm. The findings also stated that, while a significant portion of the firm’s business was devoted to the deposit and liquidation of microcap securities for customers, Restrepo failed to reasonably tailor the firm’s AML procedures and CIP to this business and failed to reasonably detect and investigate known red flags of suspicious activity associated with those transactions. As the firm’s AML compliance officer, Restrepo did not put in place a reasonable process to identify red flags specific to microcap issuers, to identify higher risk accounts, or to designate accounts that displayed certain AML-related red flags as high risk accounts. Restrepo also did not implement any reasonable system or controls to identify patterns of suspicious activity over time. As a result, the firm failed to detect and report potentially suspicious trading activity. Restrepo was also responsible for enforcing the requirement to conduct annual independent tests of the AML program, but failed to ensure that the firm conducted an AML audit. In addition, Restrepo failed to reasonably establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with Section 5 of the Securities Act for sales of unregistered shares of microcap stocks. Restrepo failed to conduct reasonable reviews to determine whether securities deposited into customer accounts were restricted and to ensure that securities sold were registered or exempt from registration. Rather, Restrepo permitted the registered representatives handling the customer accounts, who were not principals, to have sole responsibility for determining whether sales of restricted securities were eligible for an exemption from registration. Under the firm’s WSPs, when a customer sought to resell a block of a little-known security or deposit unregistered securities or large blocks of microcap stocks, the registered representative was required to make inquiries to determine whether the sale may be illegal and get a completed questionnaire from the customer. The broker on the account and Restrepo, the designated principal, were tasked with reviewing the questionnaire and raising any concerns or suspicions to the chief compliance officer and AML compliance officer. With no system to verify the accuracy of the materials customers provided to the firm, Restrepo relied solely on the brokers to review the questionnaires and the supporting materials their customers submitted. As a result, Restrepo failed to identify certain errors and red flags that would have been apparent upon a reasonable review of the documentation on its face. The findings also included that Restrepo failed to reasonably supervise two private placements sold by the firm’s registered representatives. In the first private placement, Restrepo failed to ensure the firm and its registered representatives had a reasonable basis to recommend the bonds. In addition, Restrepo was aware of but failed to reasonably investigate red flags indicating that the firm and its representatives made material misrepresentations and omissions to investors. In the second private placement, Restrepo failed to conduct or ensure the firm conducted a reasonable investigation of the offering and also failed to maintain or ensure the firm maintained documentation of any investigation performed, other than the filed containing documents from the issuer.
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanction Details :: Sanctions: Requalification Sanctions: Suspension
• Sanction Details :: Registration Capacities Affected: Any Principal Capacity
• Duration: Six Months
• Start Date: 8/2/2021
• End Date: 2/1/2022
• Sanctions: In light of Restrepo’s financial status, no monetary sanction has been imposed.

According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.

FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.

Previous Associations

Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.

• CAMDEN FINANCIAL SERVICES (CRD#: 19925) :: 3/26/2020 – 12/31/2020 :: KELLER, TX
• FUSION ANALYTICS SECURITIES LLC (CRD#: 124245) :: 4/27/2016 – 10/17/2018 :: CORAL SPRINGS, FL
• ALEXANDER CAPITAL, L.P. (CRD#: 40077) :: 10/29/2015 – 4/15/2016 :: NEW YORK, NY
• DAKOY CAPITAL MARKETS LLC (CRD#: 169954) :: 3/16/2015 – 3/25/2015 :: HUNTINGTON, NY
• FUSION ANALYTICS SECURITIES LLC (CRD#: 124245) :: 2/19/2014 – 7/16/2014 :: CORAL SPRINGS, FL
• RELIGARE CAPITAL MARKETS INC. (CRD#: 153292) :: 12/22/2010 – 1/4/2013 :: NEW YORK, NY
• MULTITRADE SECURITIES LLC (CRD#: 47485) :: 3/2/2000 – 3/31/2010 :: NEW YORK, NY
• INSTINET CORPORATION (CRD#: 14408) :: 8/19/1991 – 5/21/1999 :: NEW YORK, NY

The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.

Legit or Not?

Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Luis Fernando Restrepo, but not limited to)  can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.

Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.

There are 10 major types of complaints we receive against Investment Brokers –

• Outright Theft (Conversion of Funds)
• Unauthorized Trading
• Misrepresentation or Omission of Material Facts
• Excessive Trading (Churning)
• Lack of Diversification
• Unsuitable Investment Recommendations
• Failure to Disclose a Personal Conflict of Interest
• Front Running of Transactions
• Breakpoint Sale Violations
• Negligent Portfolio Management

Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet. 

How to Protect Yourself

We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.

Here are 5 signs that your broker needs to be reported –

• Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
• Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
• Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
• Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
• Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
• Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.

Report Luis Restrepo

In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.

Luis Fernando Restrepo – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.

Click here to go to FINRA’s Online Complaint Form →

This form will ask you for specific information related to your complaint. Be prepared by gathering the following:

• Name and symbol for the investment product in question.
• The CRD number (2167380) for the broker – Luis Fernando Restrepo
• Your complete contact information.

Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint.  Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.

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