Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Candido Viyella. from the securities industry. Mr. Viyella was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation. FINRA’s investigation originated after Morgan Stanley discharged Mr. Viyella and disclosed concerns regarding his participation, involvement, and a beneficial ownership interest in an outside investment.
Reportedly, Mr. Viyella recommended that his clients invest in the Conrad Hotel, a luxury hotel in Fort Lauderdale, Florida, in which he had a personal stake. Mr. Viyella reportedly knew the hotel was facing financial difficulties, yet recommended that his clients invest in the hotel, causing them to suffer financial losses.
Mr. Viyella was registered with Morgan Stanley in Miami, Florida, from June 2009 until December 2020. He has also been associated with the following entities: Terrena Enterprises, LLC, VSHC Management, LLC, VSHC Family Limited Partnership LP, and Earthview Capital, LLC.
Since October 2019, Mr. Viyella has been the subject of five customer complaints that appear to be related to soliciting Morgan Stanley clients to participate in promissory note investments.
If you have suffered financial losses investing with Candido Viyella or Morgan Stanley, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.
Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as Securities America, Inc.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019064630801
Candido J. Viyella and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on May 10, 2021, after Mr. Viyella refused to provide on-the-record testimony in connection with FINRA’s investigation. The investigation originated after Morgan Stanley discharged Mr. Viyella and disclosed concerns regarding his participation, involvement, and a beneficial ownership interest in an outside investment.
On April 30, 2021, in connection with FINRA’s investigation, FINRA sent a letter to Mr. Viyella requesting the production of documents and information pursuant to FINRA Rule 8210. On April 20, 2021, Mr. Viyella, through counsel, stated on a phone call that he would not appear for on-the-record testimony at any time.
By refusing to provide the information or documents, Mr. Viyella violated FINRA Rules 8210 and 2010.
Financial Advisor Candido Jose Viyella (CRD No. 1829255)
Candido Jose Viyella had 32 years of experience in the securities industry. According to his BrokerCheck report, he has been the subject of at least five recent customer complaints:
- Customer Dispute (October 2020): Customers filed a securities arbitration claim alleging that Mr. Viyella solicited an outside investment opportunity that was not authorized by Morgan Stanley. The dispute is pending.
- Customer Dispute (October 2020): A customer filed a securities arbitration claim alleging that Mr. Viyella solicited an outside investment opportunity in or about October 2015 that was not authorized by Morgan Stanley. The customer alleged $1 million in damages. Morgan Stanley settled the matter for $140,000.
- Customer Dispute (October 2020): A customer filed a securities arbitration claim alleging that Mr. Viyella solicited an outside investment opportunity in or about October 2013 that was not authorized by Morgan Stanley. The customer alleged $500,000 in damages. Morgan Stanley settled the matter for $60,000.
- Customer Dispute (March 2020): A customer filed a legal action in Miami alleging fraudulent misrepresentation with respect to an outside investment opportunity not authorized by Morgan Stanley that was solicited by Mr. Viyella between 2013 and 2015. The customer is seeking $2 million in damages. The dispute is pending.
- Customer Dispute (October 2019): A customer filed a securities arbitration claim alleging that Mr. Viyella solicited an outside investment opportunity in or about October 2015 that was not authorized by Morgan Stanley. The dispute is pending.
When a financial advisor participates in a private securities transaction that is not approved by a firm, it is referred to as “selling away.” The prohibitions on selling away are designed to protect investors by ensuring that all brokers’ activities are reasonably supervised by firms that employ them. Further, securities that are sold away from a firm have not been vetted by the firm.
Supervisory Duties
Brokerage firms like Morgan Stanley must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as “selling away,” to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have lost money with financial advisor Candido Viyella or Morgan Stanley, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@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. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.
Iorio Altamirano LLP is a bilingual law firm, fluent in both English and Spanish.