Did The GMS Group, LLC Financial Advisor Cormac Maughan Recommend You Invest in Puerto Rico Bonds?
Posted on Saturday, August 4th, 2018 at 6:46 am
There are options for customers of The GMS Group, LLC financial advisor Cormac Maughan (CRD# 1528683) regarding Puerto Rico bond losses. Maughan has been registered with The GMS Group, LLC in Livingston, New Jersey since 2004.
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.
Maughan has been the subject of two customer complaints between 2000 and 2017, according to his CRD report. The recent complaint is regarding:
November 2017. “Client alleges unsuitable recommendations of Puerto Rico municipal bonds from January 2009 through to November 2015, and breach of Fiduciary duty.” 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, The GMS Group, LLC may be liable for investment or other losses suffered by Maughan’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.