Securities Arbitration Lawyer Blog
FINRA has suspended former Insigneo broker Ignacio Erhart Del Campo from the securities industry for 2 months for exercising discretion in a customer’s account without proper authorization and engaging in unauthorized trading. Erhart Del Campo was also fined $7,500 and ordered to pay restitution of $19,189 plus interest.
If you have lost money with Ignacio Erhart Del Campo, or Insigneo, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA Letter of Acceptance, Waiver, and Consent (“AWC”)
Ignacio Erhart Del Campo and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on March 31, 2021 over the following findings:
- From November 1, 2013 to June 4, 2017, while associated with Northeast Securities, Erhart Del Campo exercised discretion in a customer’s account without written authorization in violation of NASD Rule 2510(b) and FINRA Rule 2010.
- After the customer’s death in June 2017, and unaware that the customer died, Erhart Del Campo continued to trade in the account. From June 9, 2017 to May 29, 2019, while associated with Northeast and Insigneo, he placed 77 unauthorized transactions in the account.
Discretionary Trading
From account opening in November 2013 to the customer’s death in June 2017, Erhart Del Campo traded in the customer’s account solely based on annual or semi-annual discussions with the customer regarding trading strategy. The trades went beyond time and price discretion, and Erhart Del Campo never obtained written authorization from the customer or firm approval to trade in the account on a discretionary basis.
Northeast Securities prohibited discretionary trading without written authorization from the customer. On or around April 10, 2017, in connection with a branch office exam conducted by FINRA, Erhart Del Campo completed a questionnaire that asked whether he serviced any accounts on a discretionary basis and asked him to provide a list of such customers. Erhart Del Campo falsely replied, “None.”
Unauthorized Trading
On June 4, 2017, the customer referenced above died. Unaware that she had died, Erhart Del Campo continued to trade in her account for over two years without authorization. He believed that he was trading based on a trading strategy agreed to by the customer prior to her death.
Between June 9, 2017 and May 29, 2019, Erhart Del Campo placed 77 trades in the account, including buying and selling approximately $500,000 worth of securities. The trading occurred while the account was held at Northeast Securities and after it was transferred to Insigneo.
The unauthorized transactions after the customer’s death resulted in net losses of $19,189 in the account, including the commissions on the trades.
NASD Rule 2510(b) and FINRA Rule 2010
NASD Rule 2510(b) prohibits representatives from exercising “any discretionary power in a customer’s account unless such customer has given prior written authorization” and “the account has been accepted by the member.” NASD Rule 2510 has been superseded by FINRA Rule 3260. You can read more about unauthorized trading here.
A violation of NASD Rule 2510 also constitutes a violation of FINRA Rule 2010.
FINRA Rule 2010 requires member firms and associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
Ignacio Erhart Del Campo (CRD#: 6084596)
Erhart Del Campo has 7 years of experience in the securities industry. He became registered with Insigneo Securities, LLC on July 31, 2017, after it acquired Erhart Del Campo’s prior firm, Northeast.
On September 26, 2019, Insigneo terminated Erhart Del Campo’s registration on the basis that he “failed to follow firm procedures with regards to placing trades in a client account.”
From September 27, 2019 until October 21, 2019, Erhart Del Campo was registered with FINRA through Epic Capital Securities in Boca Raton, FL.
Erhart Del Campo is not currently registered or associated with a FINRA member but remains subject to FINRA’s jurisdiction.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Ignacio Erhart Del Campo, or Insigneo, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.