Did Morgan Stanley Financial Advisor James Duffy Recommend Unsuitable Puerto Rico Bonds?

Posted on Thursday, October 25th, 2018 at 11:11 am    

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Erez Law is currently investigating Morgan Stanley financial advisor James Duffy (CRD# 1652887) regarding unsuitable Puerto Rico bond recommendations. Duffy has been registered with Morgan Stanley in Riverhead, New York since 2009.

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.

Duffy has been the subject of five customer complaints between 2000 and 2018, two of which were denied, according to his CRD report. Previous complaints were regarding suitability of investment recommendations. One recent complaint is regarding:

July 2018. “Claimant alleged, inter alia, unsuitability with respect to Puerto Rico Municipal Bonds – 2006 to 2017.” The case is currently pending.

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 Duffy’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.