National investment fraud lawyers KlaymanToskes continue their investigation of former LPL Financial and Wells Fargo broker, Mario Rivero, of Elizabeth, New Jersey on behalf of investors that suffered losses. Mario Rivero pleaded guilty before U.S. District Judge Madeline Cox Arleo in U.S. District Court in Newark, New Jersey, to one count each of wire fraud and securities fraud. He was charged with stealing more than $600,000 from his clients at both firms to fund his gambling and personal expenses, according to court documents and the Justice Department. His sentencing is scheduled for June 27.
If you suffered losses with Mario E. Rivero at LPL Financial or Wells Fargo, contact attorney Lawrence L. Klayman at 888-997-9956 or lklayman@klaymantoskes.com for a free, confidential consultation. All cases are taken on a contingency meaning you do not owe attorneys fees unless we get you a financial recovery.
In March 2022, the Justice Department had filed a complaint against Mario Rivero charging him with two counts of wire fraud, one count of investment advisor fraud and one count of securities fraud. The wire fraud and security fraud counts each carry a maximum potential penalty of 20 years in prison and maximum fines of $1 million and $5 million, respectively.
From April 2018 through November 2020, Rivero misappropriated $626,478 from five clients, according to documents filed in the case and statements made in court. In a separate complaint filed by the Securities and Exchange Commission in the same New Jersey court, the SEC alleged that Rivero “fraudulently misappropriated at least $680,000 from investment accounts that he handled, including accounts owned by elderly and/or disabled investors” from about May 2010 to September 2020.
Rivero became a broker for Wells Fargo Clearing Services in 2010, according to his report on the Financial Industry Regulatory Authority’s BrokerCheck website. He became registered as an Investment Company and Variable Contracts Products Representative in 2010 and as a General Securities Representative in 2012 through an association with Wells Fargo Clearing Services, LLC (CRD No. 19616). He remained registered as an Investment Company and Variable Contracts Products Representative until July 2012 and as a General Securities Representative until October 1, 2020, when Wells Fargo filed a Uniform Termination Notice for Securities Industry Registration (Form U5) stating that Rivero had voluntarily resigned.
On April 22, 2021, Wells Fargo filed an amended Form U5, which stated that it had initiated an internal review concerning allegations made by two former customers of Rivero. Rivero then served as a broker and representative for LPL after leaving Wells Fargo and before being barred. He refused to provide information and documents requested by FINRA pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010.
Rivero was with Wells Fargo until October 1, 2020, when the wirehouse filed a Form 5 Uniform Termination Notice stating that he voluntarily resigned, according to a FINRA letter of Acceptance, Waiver and Consent (“AWC”) that he signed in May 2021 without admitting or denying any of the findings. However, he consented to be barred from associating with any FINRA member firm to settle the dispute.
According to FINRA’s AWC, “Rivero refused to provide information and documents requested by FINRA pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010.” FINRA Rule 8210(a)(1) states that FINRA may require a person subject to FINRA’s jurisdiction “to provide information orally, in writing, or electronically . . . with respect to any matter involved in [a FINRA] investigation[.]” FINRA Rule 8210(c) further states that “[n]o . . . person shall fail to provide information . . . pursuant to this Rule.”
As a result, Mario E. Rivero Jr. has been permantly barred from acting as a broker or otherwise associating with a broker-dealer.
Customers of Mario E. Rivero Jr. that suffered losses are encouraged to immediately contact attorney Lawrence L. Klayman to discuss their rights as an investor. You can reach our office at 888-997-9956 or on the web at www.klaymantoskes.com.
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