Schwartz Law Investigates Rudy Mejia of Estrada Hinojosa & Company

Schwartz Law is currently investigating claims against Rudy R. Mejia, Jr., (CRD# 6041154) who was registered with Estrada Hinojosa & Company in Austin, Texas. We are seeking information from anyone who worked with Mr. Mejia, or who have suffered investment-related losses due to Mr. Mejia’s recommendations to invest in unapproved private securities transactions. On November 11, 2024, Rudy Mejia consented to the entry of findings that he allegedly participated in private securities transactions from November 2022 to July 2023, without providing prior written notice to Estrada Hinojosa & Company. According to his Letter of Acceptance, Waiver & Consent (AWC), Mejia and a friend allegedly co-founded a pooled investment fund with an options trading strategy and a management company to serve as the fund’s general partner. Mejia allegedly purchased $100,000 of the fund’s limited partnership interests, in the form of securities. An additional seven investors, or Limited Partners, allegedly purchased a total of $738,000 of the fund’s limited partnership interests. The AWC alleged that these investors were either friends or family of the fund’s co-founders, and three (3) were introduced to the investment by Mejia. Mejia allegedly expected compensation from the fund in the form of quarterly performance fees paid by the fund to the management company. Mejia allegedly did not provide prior written notice of his participation in these activities or his own investment in the fund to his firm and did not receive approval for them. Mejia was suspended from associating with any FINRA member for 8 months and was required to pay a $10,000 fine. Mejia runs from November 18, 2024 through July 17, 2025. You review the AWC here.

What is a Private Securities Transaction?

Private securities include all types of securities—such as stocks, bonds, or debt—that are exempt from registration with the SEC. Private securities may be bought and sold between two parties with no intermediary, or through an intermediary like a broker-dealer. But they are not freely available to trade on open markets the way publicly traded stocks trade. If a security is offered for public sale in the U.S., it generally needs to be registered with the Securities and Exchange Commission (SEC), based on the Securities Act of 1933 and the Securities Exchange Act of 1934. Private securities, however, are exempt from registration, as long as they are issued and traded based on an available exemption from registration. That means that private securities generally have less transparency and reporting requirements compared with public securities, and there tends to be some additional restrictions around buying and selling private securities. FINRA Rule 3280(a) and (b) prohibit an associated person from “participat[ing] in any manner in a private securities transaction” without first giving his firm a written notice “describing in detail the proposed transaction,” his “proposed role” in the transaction, and “whether he has received or may receive selling compensation in connection with the transaction.” Mejia allegedly failed to comply with this requirement, and Estrada Hinojosa & Company allegedly failed to supervise Mejia as a result.

Investigation of Rudy Mejia of Estrada Hinojosa & Company

If you have suffered losses as a result of Rudy R. Mejia, Jr., who was registered with Estrada Hinojosa & Company in Austin, Texas, we would like to hear from you. We are currently investigating claims against Mr. Mejia. We would like to hear from you if you have had a similar experience given that the information you have may assist us in the adjudication of claims against Mejia and Estrada Hinojosa & Company. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-618-0545 or email Matthew Schwartz directly at mschwartz@tslfirm.com.