UBC Financial Advisers Inc. president Lina Garcia (CRD# 4447599) is charged with cherry-picking scheme that caused investor losses. She was registered with Insigneo Securities, LLC in Miami, Florida, from 2010 to 2021. She has served as president and chief compliance officer at UBC Financial Advisers Inc. in Miami, Florida, since 2005.
In November 2021, the United States Securities And Exchange Commission (SEC) filed a complaint against Ramiro Sugranes, Lina Garcia, UCB Financial Advisers, Inc., and UCB Financial Services, Limited, alleging that they “engaged in a long-running fraudulent trade allocation scheme – commonly referred to as ‘cherry picking.’” According to the complaint, the brokers allocated thousands of profitable trades worth more than $4 million in stocks and options on securities to two accounts held at the UCB Entities, in the name of the Relief Defendants Ramiro Sugranes Hernandez and Thelma Lanzas De Sugranes (Ramiro Sugranes’ parents). It is alleged that they allocated millions of dollars of unprofitable trades to other investment advisory client accounts with the UCB Entities. According to BrokerCheck, “Sugranes and Garcia carried out the cherry-picking scheme through UCB Services and UCB Advisers, an investment advisory firm of which they are partial owners, by using an average price trading account used by the UCB Entities to purchase stocks and Options on behalf of numerous client accounts.” The complaint alleges that the cherry-picking scheme funneled approximately $4.6 million in illicit profits to the Preferred Accounts, and negatively impacted at least 75 Non-Preferred Accounts that suffered first-day losses. She was sanctioned to pay $225,718 in disgorgement.
In October 2022, the SEC issued a final judgment against the broker, suspending her for 12 months related to her trading in a penny stock. The complaint, regarding a cherry-picking scheme, “lasted more than four years, thousands of profitable trades of securities worth more than $4 million were allocated to two preferred accounts. In addition, millions of dollars of unprofitable trades of securities were allocated to other investment advisory client accounts.”
In January 2024, the Florida Office of Financial Regulation opened an investigation regarding the following allegations: “Violation of section 517.161(1)(k), Florida Statutes, by being the subject of a Final Judgment and SEC order involving violations of federal securities law.”
Lina Garcia Customer Complaints
She has been the subject of one customer complaint, according to her CRD report:
April 2023. “Claimants allege that representative recommended unsuitable investments and overconcentrated their accounts in speculative positions. Claimants also allege that representative engaged in a “cherry-picking” scheme wherein she favored other customer accounts over Claimants’ accounts.” The case was settled for $217,500. The complaint was regarding common and preferred stocks.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Insigneo Securities, LLC may be liable for investment or other losses suffered by Lina Garcia’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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