Category Archives: Puerto Rico Bonds

Paul D. Mante-Broker With The GMS Group-Discloses Customer Dispute-Boca Raton, FL

April 2017- Boca Raton, FL

The FINRA records of  Paul D. Mante ,  a  broker with  The GMS Group  disclose  7 prior final customer disputes, 2 of which were resolved with cash settlements.

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 FINRA #15-3075, a customer of The GMS Group alleged damages of $750,000 related to an investment in municipal debt which the customer alleged was unsuitable. The case was settled for $350,000.

Paul Mante  has been employed by The GMS Group since 5/2005.

If you have losses in an account in an account handled by Paul Mante , 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

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

Parsippany, New Jersey

UPDATE AUGUST 2017-FINRA Records disclose that in August 2017, FINRA case 16-1032 (see below) was settled for $60,000, with broker Joseph I. Rodriguez contributing $12,000 toward the settlement.

In June 2017 another dispute was filed by a Hennion & Walsh customer who is seeking damages of $125,000 and alleging that the portfolio was over concentrated with municipal debt. FINRA Case 17-1397

ORIGINAL POST-April 2017-

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 currently investigating Joe Rodriguez on behalf of several retirees who alleges that they were 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

Stifel Nicolaus Ordered to Pay Elderly Couple For Puerto Rico Bond Losses

Over the past few years St. Louis based Stifel Nicolaus & Co. has faced a number of problem with regulators as well as actions filed by disgruntled customers, including:

  • In 2014, Stifel Nicolaus  was fined $60,000 by the Securities and Exchange Commission to resolve securities regulator’s allegations that the improperly sold Puerto Rico junk bonds to retail investors by selling bonds below the minimum $100,000 denomination established by the issuer.
  • In February 2017, a FINRA arbitration panel in Dallas, Texas, awarded two former elderly customers over $117,000 for losses suffered as a result of having invested in Puerto Rico municipal bonds. Follow this link to the FINRA record of Stifel Nicolaus broker Robert Kyle Ratcliff. FINRA Case 15-03427, June and Perry Burns v Stifel Nicolaus.

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 purchased from a broker employed by Stifel Nicolaus & Co. may be able to recover damages through FINRA arbitration.

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

Sony Oozeerally-Hennion & Walsh Broker-Discloses Customer Arbitration Over Bond Losses-Parsippany, NJ

April 2017- Parsippany, New Jersey

The FINRA records of  Mamode A. Oozeerally (“Sony”) ,  a  stockbroker who is  employed by  Hennion & Walsh  disclose a prior final customer dispute 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 17-0401 a customer of Hennion & Walsh alleges damages of $150,000 for an unsuitable recommendation to purchase  municipal bonds.

Sony Oozeerally  has been employed by Hennion & Walsh since 9/2000.

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 Sony Oozeerally  , 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

Sean McElduff-Hennion&Walsh Broker-Discloses Customer Arbitration Over Puerto Rico Bonds-Parsippany, NJ

April 2017- Parsippany, New Jersey

The FINRA records of  Sean J. McElduff ,  a  stockbroker who is  employed by  Hennion & Walsh  disclose a prior final customer dispute 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 16-03651 a customer of Hennion & Walsh alleges damages of $260,000 for an unsuitable recommendation to purchase Puerto Rico municipal bonds.

McElduff  has been employed by Hennion & Walsh since 8/2008.

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 Sean J. McElduff  , 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

Merrill Lynch Fined $7M Over Leveraged Management Account Inadequacies

November 2016- New York

Merrill Lynch was fined $7 million by the Financial Industry Regulatory Authority (FINRA) for inadequately supervising the use of leverage (margin) in customer accounts.

Merrill Loan Management Accounts (LMAs) permit customers to borrow money from an affiliated bank using securities in the account as collateral. From 2010-2014, FINRA found that Merrill’s supervisory procedures were inadequate with regard to the use of the loan proceeds from the LMA’s and that customers were using the loan proceeds to purchase securities in violation of the LMA agreements.

In addition FINRA found that from 2010-2013 Merrill’s supervisory procedures were inadequate to ensure the suitability of transactions in certain Puerto Rican securities, including municipal bonds and closed-end funds, where customer accounts were highly leveraged through LMA or margin borrowing.

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

Losses on Oppenheimer Bond Fund Containing Puerto Rico Debt?

If you own an Oppenheimer Municipal Bond Fund that is down 10% or more, chances are that bond fund contains Puerto Rican municipal debt.

Puerto Rico’s economy has been suffering since 2006. Its debt is over $70 billion, unemployment is high and the population is shrinking. According to Morningstar, most bond funds contain some Puerto Rican debt. Owning a small percentage of a troubled investment in a fund is not an issue, however it becomes an issue when the percentage of Puerto Rican debt in a fund is too great.
A recent Investment News article points out that the Oppenheimer Rochester Virginia Municipal Bond Fund (ORVAX) is down more than 15% this year, ranking it last among single-state municipal bond funds and second-worst among all municipal bond funds. Since the name suggests that the investment is in Virginia debt, investors may be surprised to learn that the Oppenheimer Virginia fund held 33% of its assets in Puerto Rican debt as of August 2013, according to the article.
Other Oppenheimer funds with high exposure to Puerto Rican bonds include:
 
Oppenheimer Rochester VA Muni A
Oppenheimer Rochester NC Muni A
Oppenheimer Rochester MD Muni A
Oppenheimer Rochester AZ Muni A
Oppenheimer Rochester MA Muni A
Oppenheimer Limited Term NY Muni A
Oppenheimer PA Muni A
Oppenheimer Rochester Michigan Muni A
Oppenheimer NJ Muni A
Oppenheimer Rochester AMT-Free NY Muni A
Oppenheimer Rochester Ohio Muni A
Securities regulators recently put Oppenheimer on notice that an investigation  has been initiated against Oppenheimer, Fidelity, and UBS Financial Services in  connection with the sale of Puerto Rican municipal debt. See this for more information.
If you have suffered losses as a result of an investment in
Puerto Rican debt, either directly or in a bond fund, you may be able to recover damages.

Rex Securities Law , located in Boca Raton, FL, 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.

Rex Securities Law

561 391 1900