National investment fraud attorneys KlaymanToskes, reports that broker/investment advisor Jose Manuel Candelario Padilla (CRD# 4847560) has been suspended in all capacities by the Financial Industry Regulatory Authority (“FINRA”) due to unsuitable recommendations made to his customers to purchase leveraged and inverse exchange-traded funds (“NT-ETFs”), without sufficiently explaining the risks and features associated with the investments.
KlaymanToskes has filed many FINRA arbitration cases against Jose Candelario Padilla and his firm, Nationwide Planning Associates, Inc. on behalf of customers seeking to recover their investment losses. Recently, the firm filed case no. 23-00251 on the behalf of a disabled retiree who is seeking to recover $500,000 in damages due to an unsuitable, high-risk, and speculative stock portfolio.
If you suffered investment losses with Jose Manuel Candelario Padilla or Nationwide Planning Associates, contact attorney Lawrence L. Klayman, Esq. immediately at 866-460-4991 or by email at lklayman@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Si usted sufrió pérdidas de inversión con Jose Manuel Candelario Padilla de Nationwide Planning Associates en Puerto Rico, se le anima a ponerse en contacto con el abogado Lawrence L. Klayman, Esq. en (787) 905–7630 o lklayman@klaymantoskes.com para discutir opciones de recuperación. No cobramos honorarios de abogado a menos que podamos obtener una recuperación financiera para usted.
Nationwide Planning Associates broker, Jose Manuel Candelario Padilla, entered into a regulatory agreement known as a Letter of Acceptance, Waive, and Consent (“AWC”) with FINRA’s Department of Enforcement on March 10th, 2023.
According to the AWC, Candelario Padilla consented to sanctions of a three month suspension in all capacities from April 3rd, 2023 to July 2nd, 2023. In addition, he was ordered to pay $26,422 in restitution to affected customers, along with $2,500 in Civil and Administrative Penalties/Fines.
The AWC states that between March 2020 and October 2020, Jose Candelario Padilla recommended that retail customers at Nationwide Planning Associates purchase leveraged and inverse exchange-traded funds NT-ETFs.
FINRA found that “When he made those recommendations, Candelario Padilla did not have a sufficient understanding of the features and risks associated with NT-ETFs – including, for example, that losses in NT-ETFs can be compounded because of the daily reset function”.
As a result, Jose Candelario Padilla did not have a “reasonable basis” to believe that NT-ETFs could be suitable for, or in the best interest of, any of his customers. Due to Jose Candelario Padilla’s recommendations, nine retail customers of Nationwide Planning Associates “held a total of 14 NT-ETF positions for periods ranging from 14 to 65 days”.
FINRA’s ruling found that Jose Candelario Padilla willfully violated the Care Obligation under Rule 15/-1 of the Securities Exchange Act of 1934 (Regulation BI or Reg BI). The SEC’s Regulation Best Interest or “Reg BI” requires that financial professionals act in the best interest of their customers when making investment recommendations, without placing their own interests ahead of the customers’.
In Regulatory Notice 09-31, FINRA advised broker-dealers that before recommending the purchase of an NT-ETF, a firm and its registered representatives must understand the terms and features of the funds, including the potential effect that a customer’s intended holding period may have on the funds’ performance. The Notice also advised members that NT-ETFs “typically are not suitable for retail investors who plan to hold them for more than one trading session, particularly in volatile markets.”
KlaymanToskes can help you determine if your Nationwide Planning Associates investment loss is due to unsuitable investment advice, concentrated investments, and/or other securities violations. Depending on your circumstances, you may be entitled to recover losses through FINRA arbitration.
Investors that suffered significant losses with Jose Candelario and/or Nationwide Planning Associates should contact securities attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss their recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Si no habla inglés, no hay problema. KlaymanToskes tiene personas que hablan español por su evaluación de su caso y una oficina en San Juan, PR.
Si usted sufrió pérdidas de inversión con Jose Manuel Candelario Padilla de Nationwide Planning Associates en Puerto Rico, se le anima a ponerse en contacto con el abogado Lawrence L. Klayman, Esq. en (787) 905–7630 o lklayman@klaymantoskes.com para discutir opciones de recuperación. No cobramos honorarios de abogado a menos que podamos obtener una recuperación financiera para usted.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com