Rodriguez converted and misappropriated $10,000 from the bank checking account of a customer of his member firm and the firm’s bank affiliate.
While researching an investment for the customer, a bank employee discovered that Rodriguez had diverted a $10,000 check from the customer’s bank checking account and made the check payable to a third party, who was also a bank customer and Rodriguez’ close personal friend. The customer neither authorized Rodriguez to make the check payable to the third party nor divert the funds to the third party’s account at the bank. The third party made cash withdrawals totaling $10,000 from the bank account, and gave the money to Rodriguez, who used the funds for his personal benefit.
Ultimately, the bank re-deposited $10,000 into the customer’s bank checking account, and as a result of the bank’s inquiry, Rodriguez repaid approximately $5,000 to the bank.