Francisco Jose Faraco (CRD #5095972) is a former registered broker and investment advisor whose last employer was Morgan Stanley (CRD #149777) of New York, NY. His previous employers include J.P. Morgan Securities LLC (CRD #79), also of New York, NY, Santander Securities (CRD #41791) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) both of Miami, FL. No other employment information is available, and he is not currently registered with any FINRA member firm. He has been in the industry since 2006.
Faraco is the subject of three disclosures. Two are for one specific incident.
In January of 2016, Faraco allegedly began assisting an institutional customer obtain a $15M loan from Morgan Stanley Private Bank. In the course of applying, he attempted to keep the process moving after two roadblocks—an expired passport for one individual, and forging two signatures on two assurance documents for collateral. Faraco felt the documents were duplicates. Those signatures were representatives of affiliated companies. The bank approved the loan, and the forgeries were discovered only after one of the affiliates complained.
Although Faraco did forge two signatures and lied about a passport date, the bank and the customer later affirmed their commitment to the loan despite the deception.
Faraco signed an Acceptance, Waiver & Consent (AWC) letter on 6/18/2018, consenting to a three-month suspension and a $5,000 fine. The suspension went into effect on 8/6/2018, and ends on 11/5/2018.
When his deceptions were discovered, Morgan Stanley terminated his employment on 2/1/2017. The firm discharged Faraco for “Allegations related to authenticity of signatures on two client documents and the alteration of another client document in connection with a loan requested by client.” This is the second disclosure related to the incident.
The earliest disclosure a customer dispute, was filed on 9/8/2016, with allegations of an unauthorized bond transaction. The customer requested damages of $10,000,000; the claim was settled for $1,750,000.
Faraco has no other disciplinary history with FINRA.
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