March, 2025 | Based in Red Bank, NJ
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Essential Details About Mario Rivero and His Investigation
- Full Name: Mario Everildo Rivero Jr
- CRD Number: 5856503
- Current Location: Red Bank, NJ
- Registration Status: Not currently registered
- Previous Employers: LPL Financial LLC (09/2020 – 06/2021), Wells Fargo Clearing Services, LLC (12/2010 – 10/2020)
- Regulatory Actions: 5 regulatory events, 1 civil event
- FINRA BrokerCheck: Permanently barred from the securities industry
- SEC Action: Permanently enjoined from securities violations
- Legal Status: Pled guilty to violations of federal securities laws
- Ability to Recover Losses: Victims may be eligible for restitution and recovery through FINRA arbitration
Shocking Elder Abuse: How Mario Rivero Defrauded Elderly Clients
Mario E. Rivero Jr, a former financial advisor with Wells Fargo Clearing Services and LPL Financial, has been permanently barred from the securities industry following revelations of egregious investment fraud targeting elderly and vulnerable investors. Through a complex scheme of deception, Rivero misappropriated approximately $680,000 from at least five clients, including several in their 90s who were experiencing cognitive decline.
The case represents one of the most disturbing examples of elder financial abuse in recent years, with Rivero systematically exploiting trusted relationships with senior clients to funnel their assets into businesses he secretly controlled. Rather than investing these funds as promised, Rivero diverted the money for personal expenses, including gambling at casinos, restaurant meals, car payments, and high-risk options trading.
The Deceptive Scheme: How Rivero Manipulated Vulnerable Investors
Between July 2018 and November 2020, Rivero executed a calculated fraud scheme targeting his clients at Wells Fargo. Court documents reveal that Rivero convinced senior clients to transfer funds from their brokerage accounts to their personal bank accounts and subsequently transfer those funds to entities that Rivero secretly controlled. These included companies such as “Rivero’s Pharmacy Corporation” and “Future Trends,” businesses in which Rivero held ownership interests but failed to disclose to clients.
The investigation uncovered that Rivero falsely told victims these transfers were for investment purposes, assuring them that he would manage their funds to generate returns. In reality, once Rivero gained control of these assets, approximately $680,000 was misappropriated for personal use—a direct violation of his fiduciary duty and securities regulations.
What makes this case particularly egregious is that three of Rivero’s victims were in their nineties and experiencing cognitive decline, making them especially vulnerable to financial exploitation. This targeted approach to elder fraud resulted in multiple regulatory actions against Rivero, culminating in criminal charges.
Red Flags: The Warning Signs of Rivero’s Misconduct
Several red flags were present in Rivero’s conduct that could have alerted investors to potential problems:
- Directing Funds to Third-Party Entities: Rivero instructed clients to transfer money to outside businesses rather than maintaining investments within the regulated brokerage platform.
- Concealed Business Interests: Rivero failed to disclose his personal connections to the companies receiving client funds, creating an undisclosed conflict of interest.
- Lack of Formal Documentation: Investments were facilitated without proper written agreements or official documentation from Wells Fargo or LPL Financial.
- Targeting Vulnerable Seniors: Rivero focused his scheme on elderly clients, some experiencing cognitive decline, who might be less likely to monitor accounts closely or question his recommendations.
- Unauthorized Activities: The transfers and investment recommendations occurred outside the scope of his employment at the brokerage firms and without their knowledge or approval.
- Abnormal Transaction Patterns: The movement of funds from regulated investment accounts to personal bank accounts and then to third-party entities represented an unusual and suspicious pattern.
These warning signs highlight the importance of vigilance when working with financial advisors and the need for family members to monitor the accounts of elderly relatives who may be targets for financial exploitation.
The Regulatory Response: Multiple Agencies Take Action
The magnitude of Rivero’s fraud triggered responses from multiple regulatory authorities:
FINRA Enforcement Action
The Financial Industry Regulatory Authority (FINRA) permanently barred Rivero from the securities industry in June 2021 after he refused to cooperate with their investigation into allegations made by former customers. This bar prevents Rivero from acting as a broker or investment adviser or associating with firms that sell securities to the public.
SEC Civil Action
On March 14, 2022, the Securities and Exchange Commission (SEC) filed a complaint against Rivero in the Federal District Court of New Jersey. The complaint alleged violations of:
- Sections 17(a)(1) and 17(a)(2) of the Securities Act of 1933
- Section 10(b) of the Exchange Act and Rule 10b-5
- Sections 206(1) and 206(2) of the Investment Advisers Act of 1940
On March 6, 2023, the court entered a permanent injunction against Rivero, prohibiting him from future violations of these securities laws. The judgment also ordered disgorgement of ill-gotten gains, with final amounts to be determined by the court.
Criminal Proceedings
In a parallel criminal case, Rivero pled guilty on February 2, 2023, to violations of federal wire fraud statutes (18 U.S.C. § 1343) and securities fraud (15 U.S.C. §§ 78j(b) & 78ff, and 17 C.F.R. § 240.10b-5) in United States v. Rivero, No. 22 Crim. 11085 (D.N.J.). As of this publication, Rivero has not yet been sentenced, but faces significant penalties including imprisonment, fines, and restitution.
State Regulatory Actions
The New Jersey Bureau of Securities also took action against Rivero, revoking his registration on March 14, 2022. Similar actions were taken by Alabama securities regulators, who permanently barred Rivero from operating in their state.
The Legal Framework: Understanding Rivero’s Violations
Rivero’s conduct violated numerous securities laws and regulatory requirements that form the foundation of investor protection:
Breach of Fiduciary Duty
As an investment adviser representative, Rivero owed a fiduciary duty to his advisory clients, requiring him to act in their best interests, provide full disclosure of material facts, and avoid conflicts of interest. His scheme directly violated these fundamental obligations.
FINRA Rule 2010: Standards of Commercial Honor
This rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade—standards Rivero flagrantly disregarded through his deceptive scheme.
FINRA Rule 2111: Suitability
This rule requires that brokers have a reasonable basis to believe their recommendations are suitable for clients based on their financial situation and needs. Rivero’s recommendation to transfer funds to entities he controlled for personal use clearly violated this standard.
FINRA Rule 3270: Outside Business Activities
This rule requires registered persons to provide prior written notice to their firm before engaging in outside business activities. Rivero failed to properly disclose his involvement with outside entities that received client funds.
SEC Rule 10b-5: Anti-Fraud Provisions
This cornerstone anti-fraud provision prohibits any act, practice, or course of business which operates as a fraud or deceit upon any person in connection with the purchase or sale of any security. Rivero’s entire scheme was predicated on deception and misrepresentation.
Sections 206(1) and 206(2) of the Investment Advisers Act
These provisions prohibit investment advisers from employing devices, schemes, or artifices to defraud clients and from engaging in transactions or practices that operate as a fraud upon clients. Rivero’s conduct clearly violated these foundational principles of adviser regulation.
Guidance for Affected Investors: Steps to Recover Losses
If you or a loved one invested funds with Mario Rivero during his time at Wells Fargo Clearing Services (2010-2020) or LPL Financial (2020-2021), you may be entitled to recovery of losses. Here are important steps to take:
1. Gather Documentation
Collect all records related to your investments, including:
- Account statements
- Communications with Rivero
- Transfer confirmations
- Records of payments to outside entities
- Notes from meetings or phone calls
2. Understand Recovery Options
Several potential avenues for recovery exist:
FINRA Arbitration Against Firms: Both Wells Fargo and LPL Financial may bear responsibility for failing to adequately supervise Rivero’s activities. FINRA arbitration claims can be filed seeking compensation for losses resulting from this inadequate supervision.
Court-Ordered Restitution: As part of Rivero’s criminal case, the court may order restitution to victims. The SEC has indicated that its disgorgement claims may be satisfied by the restitution order in the criminal case.
Negotiated Settlements: In many cases, brokerage firms prefer to settle claims rather than face prolonged litigation. Our attorneys can negotiate on your behalf to seek the maximum possible recovery.
3. Act Quickly: Understand Time Limitations
It’s critical to understand that strict time limitations apply to securities claims:
- FINRA Arbitration: Generally must be filed within 6 years of the events giving rise to the claim
- Civil Court Actions: Subject to various statutes of limitations depending on the specific claims
- Victim Restitution: Requires proper documentation submitted within timeframes established by prosecutors
Given that Rivero’s fraudulent activities occurred between 2018 and 2020, the window for filing claims is rapidly closing. Immediate action is essential to preserve your rights.
How Our Investment Fraud Attorneys Can Help
Our specialized investment fraud legal team offers comprehensive representation to victims of financial advisor misconduct. Our approach includes:
Forensic Financial Analysis
Our team works with forensic accountants to trace the flow of funds from your accounts to Rivero’s controlled entities and identify the full extent of your losses, including opportunity costs and potential interest.
FINRA Arbitration Expertise
With decades of experience representing investors in FINRA arbitration proceedings, we understand how to effectively present claims against brokerage firms for failure to supervise their representatives.
Coordination with Regulatory Authorities
We maintain relationships with SEC and FINRA enforcement personnel and can coordinate with ongoing regulatory actions to maximize your potential recovery.
Elder Abuse Specialization
Our attorneys have specific expertise in elder financial abuse cases and understand the unique dynamics and legal remedies available when seniors are targeted for investment fraud.
Contingency Fee Representation
We handle investment fraud cases on a contingency fee basis—meaning you pay no legal fees unless we recover money for you. This alignment of interests ensures we are fully motivated to maximize your recovery.
If you’ve suffered losses due to Mario Rivero’s fraudulent scheme, don’t wait to take action. Contact us today at 800-950-6553 or through our secure online form to discuss your potential claim with an experienced securities fraud attorney.
