Erez Law is currently investigating Hennion & Walsh, Inc. financial advisor Sean J. McElduff (CRD# 5565355) regarding unsuitable recommendations to invest in Puerto Rico municipal bonds. McElduff has been registered with Hennion & Walsh, Inc. in Parsippany, New Jersey since 2008.
Puerto Rico suffers from long-term financial and economic deficiencies that rendered its credit increasingly more speculative. The deterioration of Puerto Rico’s financial condition culminated in its debt being downgraded to junk status or speculative (below investment grade). For the past several years, Puerto Rico has been struggling with compounding debt and economic decline. As a result, the value of Puerto Rico’s municipal tax-free bonds has considerably fallen. Since September 2013, when the steep decline in Puerto Rico bond values began, investors holding these bonds have suffered massive losses.
McElduff has been the subject of two customer complaints in 2016, according to his CRD report:
- December 2016. “Recommendation that Metkoffs purchase of Puerto Rico municipal bonds was unsuitable.” The customer is seeking $260,000 in damages and the case is currently pending.
- January 2016. “Bonds purchased were unsuitable.” The customer sought $21,000 in damages and the case was settled for $12,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Hennion & Walsh, Inc. may be liable for investment or other losses suffered by McElduff’s customers.
Erez Law represents investors in the United States for claims against Hennion & Walsh, Inc. financial advisor Sean J. McElduff, who is alleged to recommend an investment strategy concentrated in unsuitable Puerto Rico municipal bonds. If you were a client of Hennion & Walsh, Inc. financial advisor Sean J. McElduff or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.