Articles Tagged with closed end bond funds

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered losses from dealing with unscrupulous financial advisors selling municipal bonds and municipal bond funds

One of the most prominent trouble spots for investors have been mutual funds and single bonds issued by Puerto Rico, which was slammed by a long-standing debt crisis in recent years in addition to a devastating hurricane and breakdown of its infrastructure.  The island’s government, which issued the bonds, filed for bankruptcy, which triggered a negotiation with bondholders to negotiate its outstanding debt. That meant that bondholders will receive pennies on the dollar. A deal reached earlier this year slashed $8 billion in debts by 40%, according to Bloomberg News.

To date, the Puerto Rican collapse is the largest governmental bankruptcy in U.S. history, involving $129 billion in debts, reports The New York Times. The crisis was first noticed in 2012, when Moody’s downgraded the island’s bonds to near-junk status, which sunk prices of those debt securities. Since the bonds carried constitutional guarantees, investors were led to believe that they were secure. The bankruptcy was triggered since the island’s government was unable to pay back its debts. Investors, who were not fully informed of the fiscal debacle early on, got burned.

Did you lose money with Luis Sanchez? If so, the attorneys at Stoltmann Law Offices are interested in speaking with you about your legal options. According to his online BrokerCheck report with the Financial Industry Regulatory Authority (FINRA), Sanchez was registered with R-G Investment Corp in San Juan, Puerto Rico from January 2002 until October 2006, UBS in Guaynabo, Puerto Rico from October 2006 until September 2014 and UBS in Guaynabo from October 2006 until September 2014. He is currently registered with Herbert J. Sims in Guaynabo, Puerto Rico and has been since September 2014. He has 30 customer disputes against him, 18 of which are currently pending.

Sanchez was accused of misrepresenting material facts, making unsuitable investment recommendations, overconcentrating investments, misrepresenting and recommending an unsuitable Puerto Rico closed-end bond fund, and recommended a “reckless and unsuitable concentration in high risk closed-end funds,” among other securities violations. If you lost money with Luis Sanchez, you may be entitled to recover your losses. Please call us today at 312-332-4200 for a free consultation with one of our attorneys. We may be able to help you recover your losses in the FINRA arbitration forum on a contingency fee basis.

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