The allegations read: The securities and exchange commission (the "commission"), for its complaint against jesus rodriguez ("rodriguez" or "defendant"), alleges that from approximately 2014 through 2021 (the "relevant period"), rodriguez engaged in a fraudulent scheme to misappropriate more than $3.4 million from the accounts of at least ten investors (the "investors") while he served as their registered representative and/or investment adviser representative at a large financial institution dually-registered with the commission as a broker-dealer and investment adviser. Rodriguez carried out his misappropriation scheme by initiating fraudulent disbursements of funds primarily through unauthorized ach transfers, wire transfers, and cash journal transfers to other accounts at the firm. In a number of instances, rodriguez misappropriated from the investors' accounts by incurring unauthorized indebtedness collateralized by their securities accounts. In other instances, rodriguez sold securities from investors' accounts shortly before misappropriating all or part of the sales proceeds. Rodriguez was also an investment adviser to three of the defrauded investors and he breached his fiduciary duties to them by misappropriating their funds and/or by making false statements to them. By reason of the foregoing, rodriguez, directly or indirectly, singly or in concert, has violated and, unless enjoined, will again violate exchange act section 10(b) and rule 10b-5 thereunder and sections 206(1) and (2) of the advisers act.
