Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of doing business with Oriental Financial Services. Allegedly, Oriental Financial Services, part of OFG Bancorp, was responsible for investor losses sustained in at least two Puerto Rico Closed-end Bond Funds: Puerto Rico Investors Tax Free Fund IV and Puerto Rico Income Fund II.
A claim was recently filed on behalf of one couple who wanted to invest the money from their matured CDs in conservative investments. However, Oriental Financial Services allegedly recommended they invest 65 percent in the Puerto Rico Closed-end Bond Funds. According to the claim, the couple was unaware that this significant portion of their $1 million investment would be put into investments that were illiquid, concentrated, high-risk and leveraged. Reportedly, when the Puerto Rico market declined, their investment value declined by around 60 percent. In addition, the couple is unable to get out of their declining investments because there is no secondary market readily available.
Under FINRA rules, firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance. According to stock fraud lawyers, many of the investors who have suffered significant losses in Puerto Rico closed-end bond funds were unaware of the risks, and these investments were unsuitable given their risk tolerance.
Some of the funds currently being investigated by securities fraud attorneys are:
- Puerto Rico Mortgage Backed & US Govt. Fund
- Puerto Rico Fixed Income Funds I-VI
- Puerto Rico AAA Portfolio Bond Funds I and II
- Puerto Rico AAA Portfolio Target Maturity Fund
- Puerto Rico Investors Bond Fund II
- Puerto Rico Investor’s Tax-Free Funds I-VI
- Puerto Rico GNMA &US Gov. Target Maturity Fund
- Puerto Rico Tax-Free Target Maturity Fund I and II
- Tax-Free Puerto Rico Target Maturity Fund
- Tax-Free Puerto Rico Funds I and II
If you suffered significant losses in Puerto Rico closed-end bond funds from Oriental Financial Services, or another full-service brokerage firm, you may be able to recover your losses through FINRA securities arbitration. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.
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Source:
http://www.nasdaq.com/press-release/the-securities-arbitration-law-firm-of-klayman–toskes-and-carlo-law-offices-file-500000-claim-20140211-00975
Keywords: securities fraud attorney, stock fraud lawyer
Tags: Oriental Financial Services, Puerto Rico Closed-end Bond Funds, Puerto Rico Investors Tax Free Fund IV, Puerto Rico Income Fund II, Puerto Rico Mortgage Backed & US Govt. Fund, Puerto Rico Fixed Income Funds I-VI, Puerto Rico AAA Portfolio Bond Funds I and II, Puerto Rico AAA Portfolio Target Maturity Fund, Puerto Rico Investors Bond Fund II, Puerto Rico Investor’s Tax-Free Funds I-VI, Puerto Rico GNMA &US Gov. Target Maturity Fund, Puerto Rico Tax-Free Target Maturity Fund I and II, Tax-Free Puerto Rico Target Maturity Fund, Tax-Free Puerto Rico Funds I and II