BBVA Securities of Puerto Rico Ordered to Pay $1.2 Million to Investors

by InvestorLawyers on November 19, 2013

in Arbitration,Churning,FINRA,Securities Fraud,Suitability

Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of the unsuitable recommendation of investments sold by BBVA Securities of Puerto Rico representatives. Reportedly, a Financial Industry Regulatory Authority arbitration panel recently awarded $1.2 million to claimants Felix Bernard-Diaz, Julian Rodriguez and Luz Rodriguez. The defendants in the hearing were BBVA Securities of Puerto Rico Inc., Rafael Colon Ascar, Jorge Bravo, Sonia Marbarak and Julio Cayere.

BBVA Securities of Puerto Rico Ordered to Pay $1.2 Million to Investors

The claimants asserted gross negligence regarding a naked option trading strategy that was allegedly unsuitable. In addition, they alleged breach of fiduciary duty, churning, margin use and excessive trading.

According to stock fraud lawyers, 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. Churning, on the other hand, is a form of broker misconduct in which the broker performs excessive trading to generate personal profit.

Though the accusations were denied by the respondents, the arbitration panel ruled that BBVA and Ascar were liable.  The respondents have been ordered to pay damages to Barnard-Diaz in the amount of $635,000 and to the Rodriguezes in the amount of $547,000. In addition, they were ordered to pay expenses in the amount of $15,000 to each Bernard-Diaz and the Rodriguezes. However, claims against Bravo were dismissed with prejudice and the claims against Marbarak were denied. The respondents asked for Bravo and Marbarak’s CRD files to be expunged. 

If you believe you have suffered significant losses as a result of unsuitable recommendations, churning, margin use or excessive trading, you may be able to recover your losses through a securities arbitration claim. 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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