In a FINRA arbitration case filed by claimants Felix Bernard-Diaz, Julian Rodriguez and Luz Rodriguez against BBVA Securities of Puerto Rico, Inc., Jorge Bravo, Rafael Colon Ascar, Julio Cayere, and Sonia Marbarak, a Financial Industry Regulatory Authority Panel has awarded $1.2M to the claimants. The Rodriguezes and Felix Bernard-Diaz asserted unsuitable investments, breach of fiduciary duty, gross negligence related to an allegedly unsuitable naked option trading strategy, excessive trading, margin use, and churning.
The respondents denied the accusations and asserted a number of affirmative defenses. They also asked for the CRD files of two of the respondents, Bravo and Marbarak, to be expunged. Last year, respondent Cayere sought bankruptcy protection. The arbitrators did not issue a determination against him.
The FINRA panel said Ascar and BVA were liable, severally and jointly. Now, the respondents must pay Bernard-Diaz $635K in damages and $15K in expenses. The Rodriguezes were awarded $547K in damages and $15K in costs.
Claims against Marbarak were denied and those against Bravo were “dismissed with prejudice.”
FINRA Securities Arbitration
Our securities fraud law firm represents investors with FINRA arbitration cases. We are also investigating claims by customers that purchased Puerto Rico municipal bonds from Banco Santander (SAN.MC), UBS (UBS), and Banco Popular. Our Puerto Rico municipal bond attorneys are working with investors in Puerto Rico and the mainland that were affected. Other securities impacted by the US territory’s economic crisis: the Oppenheimer Pennsylvania Municipal A, the Oppenheimer Rochester VA Municipal A (ORVAX), and the Franklin Double Tax-Free Income A (ticker: FPRTX).
Two Large Customer Awards, Two Expungements, One Dismissal, And One Denial In BBVA Case, Broke an Broker, October 2, 2013
More Blog Posts:
Puerto Rican Bond Crisis Places Oppenheimer Funds at Risk, Institutional Investor Securities Blog, October 15, 2013
Puerto Rico Municipal Bonds, Stockbroker Fraud Blog, October 9, 2013
Muni Bond Funds Hit by Puerto Rico’s Debt Problems, Institutional Investor Securities Blog, October 9, 2013