Priscilla G. Sabado – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Priscilla G. Sabado.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Priscilla G. Sabado. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Priscilla Sabado
Priscilla G. Sabado is an Investment Adviser. Priscilla G. Sabado’s Central Registration Depository (CRD) number is 4650234 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/4650234.
Click here to download a Detailed Audit Report for Priscilla G. Sabado.
Priscilla G. Sabado has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Priscilla G. Sabado’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 6/15/2011
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2010022394901
- DocketNumberAAO: 2010022394901
- Initiated By: FINRA
- Allegations: NASD RULES 2110, 3040: FROM AUGUST 2008 THROUGH NOVEMBER 2009, SABADO OFFERED AND SOLD TWO ENTITIES’ OIL AND GAS INVESTMENTS TO SEVERAL OF HER CLIENTS WITHOUT THE KNOWLEDGE OR CONSENT OF HER MEMBER FIRM. ON AUGUST 31, 2010, THE SECURITIES AND EXCHANGE COMMISSION FILED A PARTIALLY SETTLED CIVIL INJUNCTIVE ACTION ALLEGING THAT BETWEEN JUNE 2007 AND SEPTEMBER 2009, THE ENTITIES AND AN INDIVIDUAL HAD FRAUDULENTLY SOLD INVESTMENTS IN TEXAS OIL AND GAS PROJECTS, RAISING APPROXIMATELY $22 MILLION FROM 300 INVESTORS NATIONWIDE. AS A RESULT OF SABADO’S RECOMMENDATIONS, SIX OF HER CURRENT FIRM CLIENTS MADE INVESTMENTS WITH THE ENTITIES TOTALING $491,880. SABADO FAILED TO PROVIDE HER FIRM WITH PRIOR NOTICE OF HER PARTICIPATION IN THESE SECURITIES TRANSACTIONS.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: All Capacities
- Start Date: 6/15/2011
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE FINDINGS, SABADO CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, SHE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.
DISCLOSURE 2 –
- Event Date: 11/30/2010
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC ADMIN RELEASES 33-9160, 34-63394; IA RELEASE 3116, NOVEMBER 30, 2010: THE SECURITIES AND EXCHANGE COMMISSION (\COMMISSION\) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE INSTITUTED PURSUANT TO SECTION 8A OF THE SECURITIES ACT OF 1933 (\SECURITIES ACT\), SECTIONS 15(B)(6) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934 (\EXCHANGE ACT\), AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 (\ADVISERS ACT\) AGAINST PRISCILLA G. SABADO ( ESPONDENT\ OR \SABADO\). THE DIVISION OF ENFORCEMENT (\DIVISION\) ALLEGED THAT: SABADO OFFERED AND SOLD OIL AND GAS WORKING INTERESTS TO SEVERAL OF HER CLIENTS. WHILE SOLICITING HER CLIENTS, SABADO MADE MATERIAL MISREPRESENTATIONS AND OMISSIONS REGARDING THE RISKS OF THE RETURNS, THE PROJECTED RETURNS AND HER FAMILY’S INVESTMENT. AS A RESULT OF SABADO’S RECOMMENDATIONS, SIX OF HER CLIENTS PURCHASED WORKING INTERESTS IN OIL AND GAS LEASES IN THE AGGREGATE AMOUNT OF $491,880. SABADO, WHO HAD NO EXPERIENCE IN SELLING OR INVESTING IN OIL AND GAS WORKING INTERESTS, DID NO MEANINGFUL DUE DILIGENCE ON THE INVESTMENTS OR THE PURPORTED OIL COMPANY SELLING THEM. THE COMPANY AGREED TO PAY SABADO AN 8% TO 10% COMMISSION FOR EACH WORKING INTEREST SOLD, WHICH IT PAID IN THE FORM OF WORKING INTERESTS IN ONE OF ITS PROJECTS. SABADO OFFERED AND SOLD WORKING INTERESTS TO HER CLIENTS. IN DOING SO, SHE VIOLATED HER FIRM’S COMPLIANCE POLICIES AND PROCEDURES PROHIBITING SELLING AWAY AND REQUIRING DISCLOSURE TO, AND APPROVAL BY, THE FIRM OF ALL OUTSIDE BUSINESS. SABADO WAS AWARE OF HER FIRM’S REQUIREMENT THAT SHE OBTAIN ITS APPROVAL PRIOR TO SELLING OIL AND GAS WORKING INTERESTS AND FAILED TO OBTAIN THE REQUIRED APPROVAL. SHE ALSO FAILED TO DISCLOSE THESE SALES ON HER ANNUAL OUTSIDE BUSINESS ACTIVITIES FORMS. IN ADDITION, SHE MADE SEVERAL MATERIAL MISREPRESENTATIONS AND OMISSIONS WHILE OFFERING THE OIL AND GAS WORKING INTERESTS TO HER CLIENTS. FOR EXAMPLE, SABADO TOLD SOME OF HER CLIENTS TO EXPECT MONTHLY \DIVIDENDS\ OF $1,200 TO $2,500, BEGINNING WITHIN THREE MONTHS OF THEIR INITIAL INVESTMENT. SABADO ALSO FALSELY REPRESENTED TO SOME INVESTORS THAT HER FAMILY INVESTED IN THE PURPORTED OIL COMPANY. IN REALITY, HER RELATIVES RECEIVED THEIR WORKING INTERESTS AS COMPENSATION FOR SABADO’S SALES. FURTHER, SABADO FALSELY TOLD CERTAIN INVESTORS THAT HER FAMILY WAS RECEIVING $5,000 A MONTH FROM THEIR INVESTMENT. SABADO ALSO FAILED TO ADEQUATELY DISCLOSE THE RISKS INVOLVED IN THE OIL AND GAS INVESTMENTS, TELLING HER CLIENTS THAT THE PROJECT INCLUDED A PROVEN WELL AND THAT THEY WOULD \MOST LIKELY\ RECEIVE THE PROMISED RETURNS. SABADO ASSURED ONE OF HER CLIENTS, A FINANCIALLY UNSOPHISTICATED 24-YEAR-OLD BLIND MAN, THAT HE WOULD RECEIVE $2,500 TO $5,000 FROM HIS INVESTMENT. SHE EVEN INSTRUCTED HIM TO REPRESENT IN THE COMPANY’S SUBSCRIPTION DOCUMENTS THAT HE WAS A SOPHISTICATED, ACCREDITED INVESTOR, WHEN HE WAS NOT. IN REALITY, HE WAS AN UNACCREDITED INVESTOR SEEKING A SAFE, INCOME-PRODUCING PRODUCT FOR OVER $139,000 HE RECEIVED AS PART OF THE SETTLEMENT OF A LAWSUIT OVER THE ACCIDENT THAT CAUSED HIS BLINDNESS. SABADO CONTINUED TO SOLICIT NEW SALES OF OIL AND GAS PROJECTS EVEN AFTER HER EARLIER CLIENTS COMPLAINED THAT THEY WERE NOT RECEIVING THE PROMISED RETURNS. IN PARTICULAR, SABADO RECOMMENDED THAT TWO CLIENTS, ONE OF WHOM WAS UNACCREDITED, BUY ANOTHER OIL AND GAS PROJECT, TELLING THESE CLIENTS THAT THEY WOULD RECEIVE SIGNIFICANT MONTHLY INCOME. SHE FAILED TO TELL THEM, HOWEVER, THAT HER OTHER CLIENTS HAD YET TO RECEIVE THEIR PROJECTED RETURNS FROM A SIMILAR INVESTMENT. THE DIVISION ALLEGED THAT SABADO VIOLATED SECTIONS 5(A), 5(C) AND 17(A) OF THE SECURITIES ACT AND SECTIONS 10(B) AND 15(A) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER.
- Resolution: Order
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: ASSOCIATION WITH ANY BROKER, DEALER, INVESTMENT ADVISER, MUNICIPAL SECURITIES DEALER, OR TRANSFER AGENT
- Duration: Indefinite
- Duration Explanation: WITH THE RIGHT TO REAPPLY AFTER 5 YEARS
- Start Date: 7/14/2011 Registration Capacities Affected: PARTICIPATING IN ANY OFFERING OF A PENNY STOCK
- Duration: Indefinite
- Duration Explanation: WITH THE RIGHT TO REAPPLY AFTER 5 YEARS
- Start Date: 7/14/2011 Sanctions: Cease and Desist Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $25,000.00 Sanctions: Disgorgement
- Sanction Details :: Amount: $2,341.00 Sanctions: Monetary Penalty other than Fines
- Sanction Details :: Amount: $275.00
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- AXA ADVISORS, LLC (CRD#: 6627) :: 6/25/2003 – 4/9/2010 :: IRVINE, CA
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Priscilla G. Sabado, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Priscilla Sabado
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Priscilla G. Sabado – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (4650234) for the broker – Priscilla G. Sabado
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.