Oriental Financial Services Corp. (Oriental) was fined $245,000 by the Financial Industry Regulatory Authority (FINRA) for failing to maintain a proper supervisory system to comply with Federal securities laws, namely, that its supervisory system failed to identify and review concentrated purchases of Puerto Rico municipal bonds and closed-end funds; and failing to disclose on customer confirmations the markups and markdowns for riskless principal transactions in Puerto Rico closed-end funds.
Without admitting or denying the findings, Oriental consented to FINRA’s sanctions and findings that if failed to disclose approximately $2.9 million in markups and markdowns on customer trade confirmations. According to FINRA, Oriental’s registered representatives continued selling the municipal bonds and closed-end funds even after the municipal bond rating had been downgraded to junk status. Consequently, Oriental Financial Services has agreed to submit to FINRA the procedure of how it intends to properly identify, review and correct any unsuitable, concentrated Puerto Rico bond purchases.
FINRA rules require brokerage firms to establish and implement a supervisory system in order to protect investors from unnecessary losses and/or broker misconduct. The implementation of these rules requires supervisors to monitor brokerage firm employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker dealers fail to implement and enforce these protective supervisory measures, they may be held liable to investors for losses. As a result, investors who have suffered losses stemming from a stockbroker or registered representative’s misconduct can bring forth claims to recover damages against brokerage firms like Popular Securities, which have a duty to supervise its employees in order to prevent unnecessary investor losses.
Have you suffered investment losses in Puerto Rico municipal bonds or closed-end bond funds? Robert Wayne Pearce, P.A. understands the complexity of these Puerto Rico bond funds and knows that your investment monies are at stake when brokers make unsuitable recommendations, over-concentrate your investment in a particular geographic area, and/or when brokerage firms fail to supervise their employees. If you have found yourself with an investment account over-concentrated in Puerto Rico municipal bonds and/or closed-end bond funds, or if you borrowed monies from Oriental Financial Services or UBS Puerto Rico and used your investments as collateral for those loans, we may be able to help you recover your losses.
We have associated with an attorney in Puerto Rico, namely Lcdo. Julio Cayere Quidgley, who will meet with you to discuss your case at no charge. Mr. Pearce and Mr. Cayere are currently representing numerous clients with claims against UBS Puerto Rico, Santander Securities, Popular Securities, Merrill Lynch and Oriental Financial Services for misrepresentations, overconcentration and/or unsuitable recommendations of its bond funds.
For dedicated representation by a law firm with over 40 years of experience in all kinds of securities, commodities and investment disputes, contact us by telephone at 561-338-0037 or toll free at 800-732-2889, via e-mail or visit our website at www.secatty.com We may also be able to arrange a meeting with you at offices located in San Juan, Puerto Rico or in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.