Category Archives: Debentures

Investigation of Hennion & Walsh Broker Joe I. Rodriguez-Parsippany, NJ

April 2017- Parsippany, New Jersey

The FINRA records of  Joseph I. Rodriguez ,  a  stockbroker who is  employed by  Hennion & Walsh  disclose 2 prior final customer disputes and a currently pending customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In pending FINRA arbitration 16-01032 a customer of Hennion & Walsh alleges damages of $250,000 for an unsuitable recommendation to purchase  municipal bonds.

In a prior matter, FINRA case #15-2348, a customer of Hennion & Walsh alleged damages of $56,390 for an unsuitable recommendation to invest in municipal debt. That case was settled for $25,000.

Joe Rodriguez  has been employed by Hennion & Walsh since 8/1998.

We are investigating Joe Rodriguez on behalf of a retiree who alleges that he was sold unsuitable Puerto Rico municipal bonds.

Puerto Rico Debt Crisis

In early 2014, various credit rating agencies downgraded the debt of Puerto Rico to non investment grade, better known as junk status or speculative grade. This downgrade triggered acceleration clauses requiring the repayment of some debt within months, rather than years.

Puerto Rico has over $70 billion of outstanding debt, with a debt to GDP ratio of about 68%. While about $30 billion (42%) of Puerto Rico’s debt is owned by residents of Puerto Rico, the larger portion is owned by non-residents, primarily residents of the continental United States.

Investors who have suffered losses on Puerto Rico’s bonds may be able to recover damages from the brokerage firm who sold the bonds.

If you have losses in an account in an account handled by Joseph I. Rodriguez  , contact us to discuss how you may be able to recover damages for those losses.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Stock Broker Sanctioned for Sale of GWG Debentures to Retirees

February 29, 2016- Phoenix, AZ

The Financial Industry Regulatory Authority (FINRA) barred Phoenix based broker David Joseph Escarcega for making unsuitable recommendations involving debentures to customers, many of whom were elderly.  In addition he was fined over $52,000.  See Disciplinary Proceeding 2012034936005.

The debentures included GWG Debentures. The prospectus for the GWG Debentures contains 30 separate risks including the following:

  • GWG had a limited operating history and had never made a profit. In 2009 and 2010, it had combined losses exceeding $5 million. The May 2012 Prospectus disclosed that GWG had a net loss of over $2.8 million for the year ending December 31, 2011.
  • Because GWG relied primarily on debt to finance its operations, an inability to continue to borrow could affect its business .
  • The Debentures are illiquid so investors would be unable to quickly re-sell their Debentures in the event they needed access to principal.
  • Changes in actuarial assumptions concerning the life expectancy of insureds could affect GWG’s cash flow and its ability to service payments on the Debentures.
  • Holders of Debentures likely could not recover their principal in the event of a default because the Debentures are subordinate to all other senior debt GWG has incurred.

According to FINRA records, Escarcega was last registered with Center Street Securities since 3/2010.

If you have losses on GWG debentures contact us to discuss how you may be entitled to recover damages.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870