FINRA Suspends Former Osaic Rep for Borrowing Money From Clients

The Financial Industry Regulatory Authority has suspended former investment representative Ronald Ray Botello for three months and ordered him to pay a $5,000 fine following allegations that he borrowed significant sums of money from his clients.

The disciplinary action, finalized in late December 2025, centers on Botello’s conduct during his time with Osaic Wealth Inc.

According to the settlement findings, Botello borrowed a total of $173,000 from two senior retail investors in December 2024 to fund a personal investment. Specifically, he received $128,000 from one customer and $45,000 from another.

While Botello maintained a personal friendship with both individuals, the loans were undocumented, did not include interest payments, and involved individuals who were not members of his immediate family. Although Botello repaid the loans in full by July 2025, the transactions occurred without the required notice to or approval from his firm.

Osaic Wealth’s internal policies strictly prohibited representatives from borrowing money from customers unless they were a financial institution or an immediate family member. The firm discharged Botello in February 2025 after he admitted to the unauthorized borrowing. FINRA determined that this conduct violated Rule 3240, which governs borrowing and lending arrangements with customers, as well as Rule 2010, which requires registered persons to maintain high standards of commercial honor.

Botello, who had been registered in the securities industry since 2004, accepted the sanctions without admitting or denying the findings. His three-month suspension prevents him from associating with any FINRA member in any capacity.

Click here to visit the AltsWire directory page.