Puerto Rico Bond Losses with FMSBonds, Inc. Financial Advisor Cecil Dimond?
Posted on Thursday, December 13th, 2018 at 6:39 am
Erez Law is currently investigating FMSBonds, Inc. financial advisor Cecil Dimond (CRD# 1133304) regarding Puerto Rico bond losses. Dimond has been registered with FMSBonds, Inc. in North Miami, Florida since 1989.
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.
Dimond has been the subject of three customer complaints between 2015 and 2018, one of which was withdrawn, according to his CRD report:
June 2018. “Claim alleges that beginning in 2012 broker began recommending risky and unsuitable investments in Puerto Rico and Chicago, IL municipal bonds. which caused losses to her principal.” The customer is seeking $200,000 in damages and the case is currently pending.
June 2017. “Upset about her Puerto Rico bond values.” The case was settled for $9,000.
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, FMSBonds, Inc. may be liable for investment or other losses suffered by Dimond’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.