TRENTON, NJ – The New Jersey Bureau of Securities has revoked the registrations of Carlos Leston for recommending and selling unsuitable investments to elderly clients. The action was announced by Attorney General Matthew J. Platkin and the Division of Consumer Affairs.
Leston, from Maywood, NJ, sold $3.65 million in securities from a New York lending company to two elderly clients. He failed to disclose that the CEO of the company was a friend, barred from the securities industry, or that he was compensated over $1.5 million through a referral arrangement with the company.
The clients, on Leston’s recommendation, liquidated insurance annuities and incurred significant losses, taxes, and surrender charges. These costs outweighed any potential benefits from the investments.
While registered at a Massachusetts-based broker-dealer, Leston conducted these transactions without authorization. His actions violated the broker-dealer’s policies and the federal Regulation Best Interest, which mandates that broker-dealers prioritize retail customers’ best interests.
