Erez Law Wins Over $1,000,000 For Losses In Puerto Rico Bonds
Posted on Thursday, January 26th, 2017 at 4:23 pm
In January 2017, Erez Law obtained an award against Oriental Financial Services Corp. (“Oriental Financial”) in a FINRA arbitration for over $1,046,556 for losses sustained in a brokerage account held with the firm. The investor was a client of Enrique Pascual, a broker that was employed by OFS Securities, Inc. which later merged with Oriental Financial.
The investor that was represented by Jeffrey Erez, Esq. of Erez Law claimed losses for unsuitable investment recommendations related to investing on margin and investing in Puerto Rico bonds, amongst other things. The investor sustained major losses in September 2013 when Puerto Rico bonds tumbled. The legal claims that were brought were for negligence, breach of fiduciary duty, violation of the Puerto Rico Uniform Securities Act, negligent supervision and violation of 10b-5 of the federal securities laws. Although the FINRA arbitration panel did not specify the basis for the award, the FINRA panel did award attorney’s fees under the Puerto Rico Uniform Securities Act in the amount of $133,000. The FINRA arbitration panel also awarded costs in the amount of $41,376.
The FINRA arbitration hearing was conducted in San Juan, Puerto Rico over the course of eight days. The investor had also made a claim against Santander Securities, LLC, but the claim was settled prior to the hearing.
“We believe that the FINRA arbitration panel accepted our version of the case and that the financial advisor made unsuitable recommendations to invest in Puerto Rico bonds with excessive margin and that the risks of the strategy were not adequately disclosed” says Jeffrey Erez, Esq. of Erez Law.
Erez Law and co-counsel Aldarondo & Lopez-Bras represent over 200 investors that have brought or are bringing FINRA arbitration claims against brokerage firms in Puerto Rico related to investments in Puerto Rico bonds and Puerto Rico bond funds. The law firms have filed cases against UBS Financial Services, Inc., Merrill Lynch, Pierce, Fenner & Smith, Inc., Santander Securities, LLC and Oriental Financial Services, Corp. Erez Law also represents investors in Florida and across the United States that have sustained losses in Puerto Rico bonds.
If you lost money in Puerto Rico bonds or Puerto Rico funds, please call us at 1-888-840-1571 or complete our contact form. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.