Raul Benitez Allegedly Sold Unsuitable NorthStar Investment

by Seth Simons | January 16, 2024 6:29 pm


Raul Benitez (CRD# 4457185[1]), formerly a broker registered with Wells Fargo and SunTrust, recommended unsuitable investments, according to investor disputes. MDF Law is investigating the Miami-based adviser, now registered with Aragon Capital, for similar conduct. If you have concerns about your accounts, contact us for a free consultation.

To learn more about the allegations against Mr. Benitez, continue reading this post. The information below is based on his Financial Industry Regulatory Authority (FINRA) BrokerCheck profile, accessed on January 9, 2024. 

Pending Dispute Seeks 6-Figure Damages

On November 6, 2023, an investor lodged a dispute alleging that Mr. Benitez recommended an unsuitable Guaranteed Investment Contract. The dispute, which remains pending, seeks damages between $100,000 and $500,000. 

Past Disputes Settled for 6 Figures

Between 2019 and 2021, three other parties of investors filed disputes involving Mr. Benitez. These disputes also alleged that he recommended unsuitable investments, with one specifying the investment in question as a NorthStar GIC. Another alleged that in addition to making an unsuitable recommendation, he made misrepresentations regarding an investment strategy. His former member firms settled the disputes for a total of more than $320,900.

What Is NorthStar Financial Services?

Several of the disputes involving Mr. Benitez appear to stem from investments in Northstar Financial Services guaranteed-income contracts. Based in Bermuda, Northstar Financial Services is known for its fixed-rate and variable annuities, among other investment products. Global Bankers Insurance Group (GBIG) acquired[2] Northstar in 2018; a year later, authorities charged GBIG’s chairman with public corruption and bribery. Though he was convicted[3] of wire fraud and bribery in 2020, an appeals court overturned[4] his conviction in 2022. He was indicted[5] on federal charges again in 2023, with a new trial forthcoming. Meanwhile, the SEC filed a civil complaint[6] against him in 2022, alleging that he and an associate defrauded clients “out of more than $75 million through undisclosed transactions that benefited themselves and their companies.”

FINRA: Benitez Based in Fort Lauderdale, Florida

Raul Benitez started working as a broker in 2001, when he registered with IDS Life Insurance Company. His career includes tenures at Mutual Service Corporation, J.P. Morgan Securities, LPL Financial, and other firms. His most recent registration as a broker, with Wells Fargo’s office in Aventura, Florida, began in 2018 and ended in 2023. In June 2023, he registered as an investment adviser with Aragon Capital. He has been with the firm since, working out of its office in Fort Lauderdale, Florida. With 20 years of experience as a broker and 21 as an investment adviser, he has completed one state securities law exam and two general industry/products exams. 

NorthStar Complaints? Call for a Free Consultation

Are you a current or former Raul Benitez client with concerns about investments in your portfolio? Did your representative recommend unsuitable securities or provide misleading information? You may be able to pursue losses through the FINRA arbitration process. At MDF Law, our attorneys boast decades of experience advocating for investors, securing more than $100 million in recoveries. We only receive a fee if our clients win, and we offer free consultations nationwide. Call 800-767-8040 to chat with our team.

  1. 4457185: https://brokercheck.finra.org/individual/summary/4457185
  2. acquired: https://www.royalgazette.com/international-business/business/article/20210830/cj-and-liquidators-see-eye-to-eye-over-northstar/
  3. convicted: https://www.insurancejournal.com/news/southeast/2020/03/09/560648.htm
  4. overturned: https://www.wral.com/bribery-conviction-overturned-in-major-north-carolina-political-scandal/20353220/
  5. indicted: https://www.justice.gov/criminal/criminal-vns/case/united-states-v-greg-e-lindber
  6. civil complaint: https://www.sec.gov/litigation/litreleases/lr-25491

Source URL: https://mdf-law.com/raul-benitez/