Former Oppenheimer and Raymond James & Associates Client Wins FINRA Arbitration for Losses in Puerto Rico Bonds
Posted on Wednesday, June 14th, 2017 at 3:45 pm
In April 2017, a former client of Oppenheimer & Co., Inc. and Raymond, James & Associates, Inc. won an award in a FINRA arbitration for compensatory damages in the amount of $81,000 for losses sustained from investments into junk bonds and Puerto Rican municipal bonds in the claimants’ joint account and their retirement accounts. The investors were clients of financial advisor Peter Chris Marketos (CRD# 1997184).
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.
The causes of action included unsuitability, negligence, negligent misrepresentation, and unauthorized trading. The FINRA arbitration hearing was conducted in New York, New York.
Marketos was registered with Cantella & Co., Inc. in Berkeley Heights, New Jersey from July 2016 to March 2017. Previously, he was registered with Raymond James & Associates, Inc. in Paramus, New Jersey from September 2014 to May 2016, and with Oppenheimer & Co. Inc. in New York, New York from 2002 to 2014.
Marketos has also been the subject of eight additional customer complaints between 2001 and 2017, two of which were denied and one was closed without action, according to his CRD report:
March 2017. “Client Alleges: Unsuitability, Common Law Fraud, Breach of Contract, Breach of Fiduciary Duty. Date of Activity is 10/2014 thru 2/2016.” The case was settled for $17,500.
March 2017. “Client Alleges Unsuitability, Common Law Fraud, Breach of Contract,and Breach of Fiduciary Duty. Date of Activity is 10/2014 thru 2/2016.” The case was settled for $27,500.
August 2016. “Customer alleges that registered representative recommended unsuitable transactions from 1/1/2011 to 10/31/2014.” The customer is seeking $330,000 in damages.
July 2016. “Claimant alleges her FA Peter Marketos recommended the purchase of unsuitable speculative fixed income securities and speculative municipal bonds. From 2012 through 9/2014.” The client sought $100,000 in damages and the case was settled for $30,000.
June 2001. “Mismanaged account; customer sought $10,000 reimbursement of investment. Dispute was mediated and settled for $1700.” The client sought $10,000 in damages and the case was settled for $1,700.
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, Oppenheimer & Co., Inc. and Raymond, James & Associates, Inc. may be liable for investment or other losses suffered by Marketos’ customers.
Erez Law represents investors in the United States for claims against former Oppenheimer & Co., Inc. and Raymond, James & Associates, Inc. financial advisor Peter Chris Marketos for losses sustained from investments into junk bonds and Puerto Rican municipal bonds. If you were a client of former Oppenheimer & Co., Inc. and Raymond, James & Associates, Inc. financial advisor Peter Chris Marketos 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.