Morgan Stanley Financial Advisor Alberto Castaner Puerto Rico Bond Losses

Posted on Wednesday, October 17th, 2018 at 4:40 pm    

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Did you lose money investing in Puerto Rico bonds with Morgan Stanley financial advisor Alberto Castaner (CRD# 1603341)? Castaner has been registered with Morgan Stanley in Ft. Lauderdale, Florida since 2014. Previously, Castaner was registered with Popular Securities, LLC in San Juan, Puerto Rico from 2007 to 2014.

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.

Castaner has been the subject of six customer complaints between 2011 and 2018, according to his CRD report:

July 2018. “Claimant alleges that Financial Consultant investment recommendations to purchase and to hold P.R. securities were unsuitable in light of the clients’ risk tolerance. Claimants also allege that recommendations made by the Financial Consultant were particularly egregious in light of Puerto Rico’s well known deteriorating financial condition.” The customer is seeking $1,075,000 in damages and the case is currently pending.

June 2018. “Claimant alleges that Financial Consultant investment recommendations to purchase and to hold P.R. securities were unsuitable in light of the clients’ risk tolerance. Claimants also allege that recommendations made by the Financial Consultant were particularly egregious in light of Puerto Rico’s well known deteriorating financial condition.” The customer is seeking $100,000 in damages and the case is currently pending.

September 2017. “Claimants allege that Financial Consultant investment recommendations to purchase and to hold P.R. Government Development Bonds and CEFs resulted in an over-concentrated and high-risk portfolio,which were unsuitable positions in light of the clients’ risk tolerance. Claimants also allege that recommendations made by the Financial Consultant were particularly egregious in light of Puerto Rico’s well known deteriorating financial condition.” The customer is seeking $850,000 in damages and the case is currently pending.

January 2017. “Claimants allege that the Branch Manager failed to reasonably supervise the Financial Consultant’s investment recommendations, which Claimants maintain were not suitable.” The customer is seeking $348,348 in damages and the case is currently pending.

October 2014. “Claimants allege that financial consultant made false and misleading representations regarding the products risks related to his investment in pr bonds and pr banks common and preferred stocks.” The customer sought $300,000 in damages and the case was settled for $150,000.

November 2011. “”Clients alleged that due to the recommendations of a former registered representative of popular securities now they have a margin debt for the amount of $45,000, corresponding to monthly withdrawals sent to them as a corrective action of the income they stopped receiving.” The customer sought $315,000 in damages and the case was settled for $37,000.

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 Castaner’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.