According to a new story in Investment News, former Morgan Stanley broker Angel Aquino-Velez, sold his clients on the sales tax revenue-based Puerto Rico Cofina bonds. The bonds were sold to investors as attractive options with triple tax-free status but crumbled once the island filed for bankruptcy in May. The bankruptcy filing was prompted by Puerto Rico’s staggering $70 billion-dollar municipal debt, and investors holding the bonds suffered massive losses.
Attorney Jeff Erez was quoted in the article saying: “Some people’s portfolios are down 80%. I just filed a claim for a client who had $5 million and now she has $1 million. Aquino-Velez fell in love with Puerto Rico bonds. He felt he knew better and continued to send that message till the day he left.”
Morgan Stanley refused to comment on the story, and the broker in question, Mr. Aquino-Velez did not respond to the reporters either. The brokerage did confirm that he started working at Morgan Stanley in 2010 and his registration with them ended in July of 2017.
For those individuals who suffered serious financial losses due to the irresponsible or knowingly misleading advice given to them by their financial advisor, there is little consolation in knowing that Mr. Aquino-Velez is no longer with Morgan Stanley. Fortunately, investors may be able to take legal action against the brokerage, but the recent storm, Hurricane Maria, left such devastation across the island that claims will be halted until October 20th, per the Investment News story. To read the entire article and hear more from Attorney Erez in the story, follow the link above or click here. To contact an experienced attorney of Erez Law call us directly at (888) 840-1571 for a free consultation.