Former UBS financial advisor Manuel Melendez has been barred from the financial industry following allegations of serious misconduct, including borrowing over $700,000 from clients without disclosure and using client funds for personal expenses. In this post, we’ll break down the specific allegations, regulatory responses, and the broader impact on investor trust.
If you or someone you know has been impacted by Manuel Melendez or another broker, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in broker misconduct cases and will help to guide you through the process with a free consultation.
Understanding the Allegations Against Manuel Melendez

Manuel Melendez’s (CRD#: 4648278) conduct while associated with UBS Financial has raised significant concerns within the financial services industry. The allegations against him reflect a breakdown of the ethical responsibilities financial advisors owe to their clients.
Key misconduct claims include:
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Unauthorized Borrowing: Melendez allegedly borrowed $738,000 from multiple clients without proper approval or disclosure, violating both internal policies and industry regulations.
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Misuse of Client Funds: Rather than investing those funds, he is accused of using them to pay personal bills and purchase luxury items.
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Undisclosed Outside Business Activities: Melendez allegedly failed to inform UBS of his involvement in a separate holding company, creating potential conflicts of interest.
These actions ultimately led to FINRA barring Melendez from working in the securities industry, citing serious violations of ethical and regulatory standards.
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A Closer Look at Melendez’s Conduct and Its Impact
The specifics of Melendez’s alleged misconduct show a pattern of behavior that undermined his clients’ trust and put their finances at risk. Financial advisors are entrusted to act in the best interests of their clients—any deviation from that duty can have long-term consequences.
Unauthorized Borrowing from Clients
One of the most damaging allegations involves Melendez’s borrowing of $738,000 from clients, a practice that:
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Violates UBS’s internal policies prohibiting personal loans from clients.
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Contradicts the fiduciary duty owed to clients.
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Undermines confidence in advisor-client relationships.
Borrowing from clients is considered a severe breach of ethics, especially when done without full transparency. This isn’t the first time Melendez has borrowed money from clients, either. He settled a case in 2023 in which he borrowed money from his client, which settled for a whopping $390,000.
Using Client Investments for Personal Gain
In addition to borrowing funds, Melendez is accused of spending client money on:
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Personal Bills
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Luxury Items
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Other Non-Investment Expenses
This kind of misuse not only leads to financial loss for investors but also damages the reputation of the broader financial advisory industry.
Failing to Disclose Outside Business Interests
Melendez allegedly operated a personal holding company without informing UBS, raising the risk of conflicts of interest that could:
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Influence his investment recommendations.
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Divert attention away from client priorities.
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Reduce the firm’s ability to supervise his conduct.
Failure to disclose outside business activities is a serious regulatory violation that often leads to disciplinary action.
FINRA’s Industry Ban and Broader Implications
Melendez’s misconduct prompted a strong response from the Financial Industry Regulatory Authority (FINRA), which permanently barred him from the industry. This action reflects FINRA’s commitment to protecting investors and maintaining integrity within financial services.
Why Regulatory Action Matters
FINRA’s decision serves as a warning and reinforces the importance of:
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Advisor Transparency: Clients must be informed of activities that could affect their investments.
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Ethical Conduct: Misuse of client funds is never acceptable.
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Enforcement of Standards: Regulatory bodies must act swiftly to remove individuals who violate core industry rules.
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Meyer Wilson Werning Helps Victims of Financial Advisor Misconduct
The case against Manuel Melendez highlights the devastating impact that unethical financial advisors can have on their clients. Investors placed their trust in Melendez—and many may have paid the price.
If you or someone you know has suffered losses due to the actions of brokers like Manuel Melendez, the experienced attorneys at Meyer Wilson Werning are here to help. With more than 20 years in the industry and over $350 million recovered for our clients, our focus on investment fraud and securities litigation has helped many investors recover their losses. Contact us today for a free consultation to discuss your case and learn how we can assist you in protecting your financial interests.
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Frequently Asked Questions

What are the specific allegations against Manuel Melendez?
Melendez allegedly borrowed $738,000 from clients, used those funds for personal expenses, and failed to disclose outside business activities while associated with UBS.
What action did FINRA take?
FINRA permanently barred Melendez from associating with any member firm, effectively ending his career in the securities industry.
Why is borrowing from clients considered misconduct?
Borrowing from clients without disclosure creates a serious conflict of interest and breaches fiduciary duties, often resulting in regulatory penalties.
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