Articles Tagged with Santander Securities

shutterstock_112866430-300x199The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Mariondy Fernandez (Fernandez). According to BrokerCheck Records held by the Financial Industry Regulatory Authority (FINRA), Fernandez has been subject to 19 customer disputes, 10 of which are still pending. The majority of these disputes concern violations of various securities laws regarding Puerto Rico municipal bonds and closed-end funds.

Most recently, in June 2018, a client alleged that Fernandez violated various securities laws, was negligent to industry standards, breached fiduciary duty, and failed to supervise in the case of the customer’s investments in Puerto Rico bonds and closed-end funds. This dispute is currently still pending.

In December 2017, a customer similarly alleged that Fernandez unsuitably placed the customer into Puerto Rico municipal bonds and over-concentrated the customer’s funds in the investments. In addition, the customer alleges failure to supervise and negligence. The customer has requested $1,910,000 in damages. this dispute is currently still pending.

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shutterstock_115937266According to UBS’ second quarter earnings report, the bank is now looking at over $600 million in claims brought by Puerto Rico investors, who have suffered significant losses related to their investments in closed-end bond funds. The Financial Industry Regulatory Authority (FINRA) has been inundated with a plethora of claims in connection with the closed-end UBS Puerto Rico Bond Funds. Investors are looking to be made whole after they purportedly received misleading information regarding these investments. While the majority of the claims were filed against UBS Financial Services of Puerto, other firms, including Merrill Lynch, Banco Popular, Santander Securities, and Oriental Financial Services have also been named as Respondents in many of the claims.

UBS recognizes the perilous situation that it now faces with respect to these claims, explaining, “declines in the market prices of Puerto Rico municipal bonds and of UBS Puerto Rico sole-managed and co-managed closed-end funds since August 2013 have led to multiple regulatory inquiries, as well as customer complaints and arbitrations with aggregate claimed damages exceeding [$]600 million filed by clients in Puerto Rico who own those securities.”

Some of the claims that UBS face, including clients represented by our firm, include allegations of unsuitability, over-concentration, fraud, and breach of contract among others. FINRA and the Municipal Securities Rulemaking Board require broker dealers to have a reasonable basis to support the suitability of their recommendations to customers. Legal representatives for many claimants have said that the UBS employees prioritized commissions when they sold the closed-end bond funds to Puerto Rican investors, who were not economically equipped to make those investments.