Did You Lose Money Due to Puerto Rico Bond Investments with Stifel, Nicolaus & Company, Inc. Financial Advisor David Holz?

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Erez Law is currently investigating Stifel, Nicolaus & Company, Inc. financial advisor David Holz (CRD# 2488092) regarding losses suffered due to investments in Puerto Rico Bonds. Holz has been registered with Stifel, Nicolaus & Company, Inc. in Boca Raton, Florida since 2013. Previously, he was registered with RBC Capital Markets, LLC in West Palm Beach, Florida from 2009 to 2013.

In August 2016, a FINRA arbitration was reportedly filed against Stifel, Nicolaus & Company, Inc. and RBC Capital Markets, LLC regarding Holz. The Stifel claim alleges breach of fiduciary duty, suitability, fraudulent misrepresentation, negligent misrepresentation, negligence, negligent supervision, unjust enrichment and breach of contract. The RBC claim alleges unsuitable recommendations in energy issues and Puerto Rico bonds, in period 2007 to 2013, after which assets transferred to Stifel. The client, a 91-year-old widow, had 95% of her investment portfolio concentrated in unsuitable Puerto Rico debt.

Additionally, Holz has been the subject of three additional customer complaints between 2006 and 2016, one of which was denied and one was withdrawn, according to his CRD report:

October 2015. “Negligence, breach of fiduciary duty, negligent supervision, and breach of contract.” The customer sought $300,000 in damages and the case was settled for $70,000.

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.

At Erez Law, many of our clients come to us because of our specialization in Puerto Rico bonds. We have filed more than 200 FINRA arbitration cases against large brokerage firms, including UBS, Merrill Lynch, Santander Securities, Morgan Stanley, Oriental Financial Services, Popular Securities and others, holding these firms accountable for dishonest investment advisory practices, unsuitable recommendations, misrepresentation, and over-concentration in connection with Puerto Rico bonds and funds.

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, Stifel, Nicolaus & Company, Inc. and RBC Capital Markets, LLC may be liable for investment or other losses suffered by Holz’s customers.

Erez Law represents investors in the United States for claims against Stifel, Nicolaus & Company, Inc. financial advisor David Holz, who is alleged to overconcentrate investment portfolios in high risk Puerto Rico debt. If you were a client of Stifel, Nicolaus & Company, Inc., RBC Capital Markets, LLC 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.

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Author: Jeffrey Erez

The founder of Erez Law, Jeffrey Erez, focuses exclusively on securities arbitration and litigation. Mr. Erez passionately believes in representing aggrieved investors and obtaining justice for his clients through litigation.