Wells Fargo Advisors to Pay $8.6M, UBS Pays $4.3M
Have you suffered losses investing in Puerto Rico bonds at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
According to FINRA’s website, a FINRA arbitration panel has ordered Wells Fargo Advisors and one of its brokers to pay $8.6 million over the sales of Puerto Rico bonds.
A client sued Wells Fargo’s wealth management unit and broker in 2016, according to FINRA.
The investor alleged his money was invested inappropriately in the Puerto Rico bonds, given his conservative risk profile, and that the broker failed to follow Wells Fargo’s own analysts who deemed the bonds inappropriate for conservative risk profiles, according to reports.
The advisor and Wells Fargo Advisors are held jointly liable for $4.2 million to cover the client’s investment losses plus interest, with the rest of the award going toward lawyer fees and punitive damages.
According to FINRA filings, the clients’ accounts were invested almost entirely in Puerto Rico bonds in 2012 and 2013. The original complaint also listed RBC Capital Markets as a co-defendant with Wells Fargo Advisors and the advisor who was with RBC from 2004 to 2010. RBC settled with the client in May for $25,000, according to reports.
UBS Financial Service to pay another $4.3 Million for Puerto Rico Bonds
Wells Fargo isn’t the only one getting hit for the sale of Puerto Rico bonds. At the end of June, FINRA ordered UBS Financial Services to pay $4.3 million to a family who lost money in Puerto Rico bonds.
According to FINRA, a FINRA dispute resolution panel ruled UBS must pay compensatory damages and costs of $4.3 million to a family who allege negligent supervision and fraud, among other charges. The family had bought Puerto Rico bonds, some of which were underwritten by UBS, as well as proprietary closed-end funds whose investment focus were also Puerto Rico bonds, according to the award.
Free Consultation with a Securities Attorney
Unfortunately it appears that many more investors suffered devastating losses as a result of Puerto Rico bond funds. Brokers that sold Puerto Rico bond funds had a responsibility to make sure the investment recommendation was suitable for their client.
The White Law Group continues to investigate claims against the brokerage firms that pushed Puerto Rico bonds and bond funds to investors.
If you are concerned about your investment in Puerto Rico bonds and would like to speak to a securities attorney, please call The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
To learn more about the firm, please visit www.WhiteSecuritiesLaw.com.