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Morgan Stanley Customers Could Recover Losses for Unsuitable Puerto Rico Bond Sales
According to one claim that was recently filed, Morgan Stanley advisors recommended that one couple invest all their money into bonds issued by Puerto Rico Sales Tax Financing Corp., Puerto Rico Public Finance Corp. and Puerto Rico Electric Power Authority, when a low-risk, safe, fixed-income portfolio would have been more suitable for the couple. The claim is seeking to recover $200,000 in damages. According to stock fraud lawyers, Puerto Rico Bonds and bond funds were unsuitable for many investors given their age, investment objectives and risk tolerance.
Allegedly, Morgan Stanley did not adequately disclose the risk associated with the recommended investment strategy of concentrating all of their funds into these three investments. The firm also allegedly failed to adequately disclose the risks associated with low credit ratings and long-duration bonds. Allegedly, the couple was led to believe that the Puerto Rico Bonds were constitutionally guaranteed by the Commonwealth of Puerto Rico.
Some of the bonds and bond funds currently being investigated by securities fraud attorneys are:
- Puerto Rico Sales Tax Financing Corp.
- Puerto Rico Public Finance Corp.
- Puerto Rico Electric Power Authority
- 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 Investors 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 as a result of purchasing unsuitable Puerto Rico Bonds from Morgan Stanley, you may be able to recover your losses through FINRA arbitration. To find out more about your legal rights and options, contact a lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.