Recovery of Losses in Puerto Rico COFINA Sales Tax Revenue Bonds Senior Series 2009C
Did you lose money investing in Puerto Rico COFINA Sales Tax Revenue Bonds Senior Series 2009C at the recommendation of your broker? If so, the attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration against the brokerage firm that employs him.
Puerto Rico COFINA Bonds or Puerto Rico Urgent Interest Fund Corporation Bonds, are attached to Puerto Rico’s sales tax. COFINA is a corporation that is owned and controlled by the Puerto Rican government. When it issues debt, the funds that will be used for repayment comes directly from sales tax revenue.
This is the main feature that distinguishes COFINA bonds from general obligations bonds. General obligation bonds or GO bonds are not tied to any specific funding mechanisms. Instead, those bonds are backed by the full faith and credit of the Puerto Rican government as well as the island’s constitution.
Puerto Rico Files for Bankruptcy
Last month, Puerto Rico and its federal financial oversight board got hit with various lawsuits from COFINA bond holders, GO bondholders and bond insurer Ambac Assurance Corp.
This torrent of litigation led to the largest U.S. municipal bankruptcy proceeding to date with $70 billion debt load and $49 billion in pension liabilities. With a 45 percent poverty rate and near-insolvent public health and pension systems, islanders are leaving Puerto Rico and heading to mainland U.S. by the droves.
If successful, this lawsuit will cripple the value of Puerto Rico’s COFINA bonds. Already many of the bonds have suffered substantial losses.
Recovery of Investment Losses in COFINA bonds
The White Law Group is investigating the liability that brokerage firms may have for improperly selling Puerto Rico COFINA Bonds such as Puerto Rico COFINA Sales Tax Revenue Bonds Senior Series 2009C.
Broker dealers are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
If you suffered losses investing in Puerto Rico COFINA Sales Tax Revenue Bonds Senior Series 2009C, or another COFINA bond, the attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that recommended the investment to you.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in claims against their brokerage firm.
For a free consultation with one of the firm’s securities attorneys, please call (888) 637-5510.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.