The GMS Group, LLC Financial Advisor Paul Mante Puerto Rico Bond Losses
Posted on Saturday, March 16th, 2019 at 10:54 am
Did you suffer losses due to investments in Puerto Rico bonds with The GMS Group, LLC financial advisor Paul Mante (CRD# 4911949)? Mante has been registered with The GMS Group, LLC in Boca Raton, Florida since 2005.
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.
Mante has been the subject of nine customer complaints between 2005 and 2018, four of which were denied and one was closed without action, according to his CRD report:
January 2018. “Clients allege misrepresentation of Puerto Rico bonds for the period of May 2014 through to December 2017.” The customer is seeking $1 million and the case is currently pending.
January 2018. “Client alleges broker negligently recommended and misrepresented the safety of the Puerto Rico bonds from the time period of May 2013 through to September 2014.” The customer sought $40,000 in damages and the case was settled for $13,500.
November 2015. “The client alleges the Account Executive made unsuitable recommendations during the period of April 2015-October 2015.” The customer sought $750,000 in damages and the case was settled for $350,000.
October 2008. “The client alleges negligence and misrepresentation concerning a security purchased May 2, 2008.” The customer sought $25,911.50 in damages and the case was settled for $7,800.
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, The GMS Group, LLC may be liable for investment or other losses suffered by Mante’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.