Did You Lose Money Investing in Puerto Rico Bonds with Hennion & Walsh, Inc. Financial Advisor Mamode Oozeerally?
Posted on Wednesday, February 21st, 2018 at 9:14 am
Erez Law is interested in speaking with investors who may have suffered losses due to investments with Hennion & Walsh, Inc. financial advisor Mamode Oozeerally (Sony Oozeerally) (CRD# 4245327) regarding losses sustained from Puerto Rico bonds. Oozeerally has been registered with Hennion & Walsh, Inc. in Parsippany, New Jersey since 2000.
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.
To make matters worse, after Hurricane Maria devastated the island in September 2017, Puerto Rico debt fell by 4%, the biggest weekly drop since July 2015. This sharp fall came after Governor Alejandro García Padilla announced that Puerto Rico would ask bondholders to take less than what they were owed.
Oozeerally has been the subject of two customer complaints between 2010 and 2017, according to his CRD report:
February 2017. “Claimant’s allege that certain of their bond purchases were unsuitable.” The customer sought $150,000 in damages and the case was settled for $60,000.
December 2010. “Non payment of auction rate securities.” The customer sought $850,000 in damages and the case was settled for $9,999.
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, Hennion & Walsh, Inc. may be liable for investment or other losses suffered by Oozeerally’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.