According to FINRA, Jose Antonio Navarro of San Diego, California was assessed a deferred fine of $20,000 and suspended from association with any FINRA member in all capacities for 12 months for participating in undisclosed private securities transactions, borrowing from customers, and providing misleading information to FINRA.

After personally investing in an alternative energy company, Navarro introduced the investment opportunity to five customers who collectively invested $87,500. He recommended the investment and took steps to facilitate purchases. The company subsequently filed for bankruptcy and investors received no money back.

Navarro did not receive selling compensation but participated without notifying his firm. He also falsely represented on compliance agreements that he did not engage in selling away.

Additionally, through his tax preparation business, Navarro borrowed a total of $80,000 from two firm customers without seeking approval from his firm. Although these loans were documented and repaid, Navarro falsely represented to his firm that he did not make loans to clients.

When FINRA initially requested information, Navarro provided a partial and misleading response. He identified only one customer investor and stated that although he mentioned his investment to "personal friends," "no one expressed interest." He also failed to provide relevant emails. Only after a second request did Navarro correct his response and disclose the identities of the four other customers.

The 12-month suspension reflects the multiple violations and the initial misleading response to FINRA.

The suspension is in effect from May 19, 2025, through May 18, 2026.

Investors who invested in the alternative energy company on Navarro's recommendation may wish to consult with an attorney about potential claims.