Erez Law is currently investigating Morgan Stanley financial advisor Gerardo Latimer-Janer (CRD# 2491626) regarding Puerto Rico bond losses. Latimer-Janer has been registered with Morgan Stanley in Ft. Lauderdale, Florida since 2014.
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. In May 2017, Puerto Rico filed for bankruptcy protection from creditors in what is being described as the largest municipal bankruptcy filing in history. This filing came about after Governor Ricardo Rossello failed to persuade Puerto Rico’s creditors to settle for a reduced payment amount, the government faced new lawsuits pending from their defaults, and the proposed 10-year fiscal plan only (see our previous post here) that was approved in March 2017 covered a quarter of the debt payments necessary for the island.
Latimer-Janer has been the subject of two customer complaints between 2015 and 2018, according to his CRD report:
- March 2018. “Time frame: 2011-2014 Claimant’s Counsel alleges unsuitability, misrepresentation and over concentration in Puerto Rico municipal bonds and also alleges recommendation to hold.” The customer is seeking $10 million in damages and the case is currently pending.
- September 2015. “Time Frame: 2012-2014 Claimants allege misrepresentations, unsuitability, and over concentration concerning their investments in Puerto Rico municipal bonds, closed-end funds, and preferred stocks.” The customer sought $809,000 in damages and the case was settled for $209,000.
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, Morgan Stanley may be liable for investment or other losses suffered by Latimer-Janer’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If 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.