Maryland

On or about September 19, 2022, Respondent entered into a Letter of Acceptance, Waiver and Consent ("AWC") with FINRA wherein, without admitting or denying the findings, Respondent consented to an eight-month suspension from associating with any FINRA member in all capacities and the payment of a $5,000 fine, for engaging in excessive and unsuitable transactions in customer, accounts. The findings stated that each of the customers relied on Respondent's advice and accepted his recommendations. Those recommended transactions collectively caused the customers to pay $101, 508.10 in commissions and other charges. Based upon the AWC and the facts underlying the AWC, grounds exist under sections 11-412(a)(6) and (a)(7) of the Securities Act to revoke Respondent's agent registration.

Consent

Respondent's agent registration was terminated as of the date of the Consent Order, and Respondent agreed not to reapply as a broker-dealer, agent, investment adviser or investment adviser representative with the State of Maryland.

FINRA

Without admitting or denying the findings, Murillo consented to the sanctions and to the entry of findings that he excessively and unsuitably traded customer accounts. The findings stated that each of the customers relied on Murillo's advice and accepted his recommendations. Those recommended transactions collectively caused the customers to pay $101,508.10 in commissions and other charges.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

All Capacities

eight months

9/19/2022

5/18/2023

Murillo is not required to pay restitution because his member firm has agreed to pay as restitution the commissions and other trading costs charged to the customers as a result of Murillo's unsuitable securities recommendations.

$41,502.15

Tax

THE REGISTERED REPRESENTATIVE HS STATED THAT HE IS CURRENTLY ON A PAYMENT PLAN WITH THE INTERNAL REVENUE SERVICE.

FRAUD, UNSUITABLE INVESTMENTS, UNAUTHORIZED TRANSACTIONS, EXCESSIVE TRADING, BREACH OF FIDUCIARY DUTY.

$800,000.00

$250,000.00

MR. MURILLO DENIES THE CUSTOMERS ALLEGATIONS. THEY INVESTED IN SECURITIES WHICH REMAINED SUITABLE AND CONSISTENT WITH THE CUSTOMERS INVESTMENT PROFILE, EXPERIENCE AND KNOWLEDGE. THE CLAIMANT TRANSFERRED HIS ACCOUNT BACK TO UBS FINANCIAL BEFORE CERTAIN GAINS OR LOSSES COULD BE REALIZED WITHIN THE ACCOUNTS IN QUESTION. THE ALLEGATIONS ARE FALSE AND INACCURATE. CONSEQUENTLY WE INTEND TO VIGOROUSLY DISPUTE THE CLAIMS ALLEGED BY THE CLAIMANT.

FINRA

NASD RULES 2110, 2310, INTERPRETATIVE MATERIAL 2310-2: MURILLO RECOMMENDED EXCESSIVE TRANSACTIONS IN THE ACCOUNT OF A CUSTOMER WHICH WERE UNSUITABLE IN LIGHT OF THE CUSTOMER'S FINANCIAL SITUATIONS, NEEDS AND INVESTMENT OBJECTIVES. MURILLO CONTROLLED AND DIRECTED THE TRADING IN THE CUSTOMER'S ACCOUNT IN THAT HE RECOMMENDED AND EXECUTED ALL THE TRANSACTIONS IN THE ACCOUNT. MOREOVER, THE CUSTOMER WAS UNABLE TO EVALUATE MURILLO'S RECOMMENDATIONS, DID NOT UNDERSTAND WHAT MARGIN MEANT, AND WAS UNABLE TO EXERCISE INDEPENDENT JUDGMENT CONCERNING THE TRANSACTIONS IN THE ACCOUNT DUE TO HIS LACK OF INVESTMENT KNOWLEDGE AND LIMITED ENGLISH SKILLS. THE CUSTOMER TRUSTED MURILLO COMPLETELY TO MAKE AND EXECUTE RECOMMENDATIONS IN HIS ACCOUNT. MURILLO DID NOT HAVE A REASONABLE BASIS FOR BELIEVING THAT THE VOLUME OF TRADING HE RECOMMENDED WAS SUITABLE FOR THE CUSTOMER IN LIGHT OF INFORMATION KNOWN TO HIM ABOUT THE CUSTOMER'S FINANCIAL CIRCUMSTANCES AND NEEDS. GIVEN THE AMOUNT OF COMMISSIONS AND FEES THE CUSTOMER WAS CHARGED AS A RESULT OF THEM, THE TRANSACTIONS MURILLO RECOMMENDED AND EXECUTED WERE UNSUITABLE, EVEN IF THE INVESTMENT OBJECTIVES WERE SPECULATIVE AS REFLECTED ON THE CUSTOMER'S NEW ACCOUNT FORM. THE CUSTOMER TOLD MURILLO THAT HE WANTED A CONSERVATIVE RETIREMENT ACCOUNT SET UP BECAUSE HE WAS NEARING RETIREMENT AGE AND COULD NOT RISK ANY LOSSES WITH HIS FUNDS. NEVERTHELESS, THE NEW ACCOUNT FORMS LISTED THE CUSTOMER'S INVESTMENT OBJECTIVE AS SPECULATION AND HIS RISK TOLERANCE AS AGGRESSIVE. THE TRADES WERE EXCESSIVE IN NUMBER AND RESULTED IN EXCESSIVE COSTS TO THE CUSTOMER'S ACCOUNT. THE VAST MAJORITY OF THE TRANSACTIONS IN THE CUSTOMER'S ACCOUNT WERE EFFECTED THROUGH THE USE OF MARGIN AND RESULTED IN THE CUSTOMER INCURRING ADDITIONAL COSTS IN THE FORM OF MARGIN INTEREST. ALTHOUGH THE CUSTOMER SIGNED A PRE-COMPLETED MARGIN AGREEMENT, ALONG WITH OTHER PRE-COMPLETED NEW ACCOUNT FORMS MURILLO SENT TO HIM, THE CUSTOMER DID NOT UNDERSTAND MARGIN AND DID NOT REALIZE THAT MURILLO WAS EFFECTING TRADES ON HIS ACCOUNT ON MARGIN. OWING TO HIS LACK OF INVESTMENT KNOWLEDGE AND INABILITY TO DECIPHER HIS MONTHLY ACCOUNT STATEMENTS, THE CUSTOMER WAS UNAWARE THAT HE HAD A MARGIN BALANCE AND DID NOT UNDERSTAND THE RISK OF THE MARGIN EXPOSURE IN HIS ACCOUNT. FOR EXAMPLE, AT ONE POINT THE CUSTOMER'S ACCOUNT HAD A MARGIN BALANCE OF APPROXIMATELY $106,818.52 WHILE THE ACCOUNT'S EQUITY WAS APPROXIMATELY $67,479.98. THE TRANSACTIONS ON MARGIN EFFECTED BY MURILLO IN THE CUSTOMER'S ACCOUNT WERE UNSUITABLE FOR THE CUSTOMER IN VIEW OF THE SIZE AND NATURE OF THE ACCOUNT AND THE CUSTOMER'S FINANCIAL SITUATION AND NEEDS.

Decision & Order of Offer of Settlement

Restitution

$35,000.00

Suspension

ALL CAPACITIES

20 BUSINESS DAYS

7/18/2011

8/12/2011

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MURILLO CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 20 BUSINESS DAYS AND ORDERED TO PAY PARTIAL RESTITUTION OF $35,000 TO A CUSTOMER. MURILLO HAS SUBMITTED A SWORN FINANCIAL STATEMENT AND DEMONSTRATED A LIMITED ABILITY TO PAY. IN LIGHT OF THE FINANCIAL STATUS OF MURILLO, THE SANCTIONS INCLUDE PARTIAL RESTITUTION AND DO NOT INCLUDE A MONETARY FINE. MURILLO SHALL SUBMIT SATISFACTORY PROOF OF PAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECT RESTITUTION. PROOF OF PAYMENT SHALL BE PROVIDED TO FINRA NO LATER THAN 120 DAYS AFTER ACCEPTANCE OF THIS OFFER. IF FOR ANY REASON MURILLO CANNOT LOCATE THE CUSTOMER AFTER REASONABLE AND DOCUMENTED EFFORTS WITHIN 120 DAYS FROM THE DATE THE OFFER IS ACCEPTED, OR SUCH ADDITIONAL PERIOD AGREED TO BY FINRA IN WRITING, MURILLO SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY OR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS LAST KNOWN TO HAVE RESIDED. MURILLO SHALL PROVIDE SATISFACTORY PROOF OF SUCH ACTION TO FINRA WITHIN 14 DAYS OF FORWARDING THE UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE STATE AUTHORITY. THE IMPOSITION OF A RESTITUTION ORDER OR ANY OTHER MONETARY SANCTION HEREIN, AND THE TIMING OF SUCH ORDERED PAYMENTS, DOES NOT PRECLUDE THE CUSTOMER FROM PURSUING THEIR OWN ACTIONS TO OBTAIN RESTITUTION OR OTHER REMEDIES. THE SUSPENSION IS IN EFFECT JULY 18, 2011 THROUGH AUGUST 12, 2011.

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MURILLO CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 20 BUSINESS DAYS AND ORDERED TO PAY PARTIAL RESTITUTION OF $35,000 TO A CUSTOMER. MURILLO HAS SUBMITTED A SWORN FINANCIAL STATEMENT AND DEMONSTRATED A LIMITED ABILITY TO PAY. IN LIGHT OF THE FINANCIAL STATUS OF MURILLO, THE SANCTIONS INCLUDE PARTIAL RESTITUTION AND DO NOT INCLUDE A MONETARY FINE. MURILLO SHALL SUBMIT SATISFACTORY PROOF OF PAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECT RESTITUTION. PROOF OF PAYMENT SHALL BE PROVIDED TO FINRA NO LATER THAN 120 DAYS AFTER ACCEPTANCE OF THIS OFFER. IF FOR ANY REASON MURILLO CANNOT LOCATE THE CUSTOMER AFTER REASONABLE AND DOCUMENTED EFFORTS WITHIN 120 DAYS FROM THE DATE THE OFFER IS ACCEPTED, OR SUCH ADDITIONAL PERIOD AGREED TO BY FINRA IN WRITING, MURILLO SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY OR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS LAST KNOWN TO HAVE RESIDED. MURILLO SHALL PROVIDE SATISFACTORY PROOF OF SUCH ACTION TO FINRA WITHIN 14 DAYS OF FORWARDING THE UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE STATE AUTHORITY. THE IMPOSITION OF A RESTITUTION ORDER OR ANY OTHER MONETARY SANCTION HEREIN, AND THE TIMING OF SUCH ORDERED PAYMENTS, DOES NOT PRECLUDE THE CUSTOMER FROM PURSUING THEIR OWN ACTIONS TO OBTAIN RESTITUTION OR OTHER REMEDIES. THE SUSPENSION IS IN EFFECT JULY 18, 2011 THROUGH AUGUST 12, 2011.

ALLEGATIONS ARE FAILURE TO FOLLOW INSTRUCTIONS, UNAUTHORIZED TRADING AND MISREPRESENTATION.

$110,000.00

$35,000.00

RECEIVED COMPLAINT LETTER FORM REPS PREVIOUS EMPLOYER THAT WAS SIGNED BY THE CUSTOMER. THE LETTER SEEMS TO BE A RESCIND LETTER BUT THE LAST SENTENCE STATES THAT CUSTOMER DID NOT SIGN ANY PAPERWORK TRANSFERRING ACCOUNT TO AURA FINANCIAL.

THIS COMPLAINT WAS FORWARDED TO AURA FROM THE REPS PREVIOUS EMPLOYER, WEST CAPITITAL INC. THE COMPLAINT SEEMS TO BE A RESCIND LETTER BUT HAS A SENTENCE ADDED TO THE END THAT ALLEGES FORGERY. SEVERAL REPS RESIGNED FROM WEST CAPITAL INC. AND WE ARE CURRENTLY INVESTIGATING THE ALLEGATIONS. RECEIVED LETTER FROM CUSTOMER 07/24/2007 STATING HE DID SIGN ORIGINAL PAPERWORK TO TRANSFER ACCOUNT.