SAN JUAN, Puerto Rico, Sept. 3, 2014 (GLOBE NEWSWIRE) — The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.perdidasenbonospr.com, together with Carlo Law Offices, P.S.C. located in Puerto Rico, announced today that they filed a claim against Popular Securities (“Popular”), a part of Popular, Inc. (Nasdaq:BPOP). The claim, filed with FINRA’s arbitration department, seeks to recover damages of $5 million as a result of being over-concentrated in securities tied to the performance of Puerto Rico’s economy.
According to the Claim, the Claimant entrusted his assets to Popular Securities with the objective of growth and income with capital preservation. However, Popular ended up concentrating at least 80% of Claimant’s account in securities closely tied to the performance of Puerto Rico’s economy. Specifically, Popular advised Claimant to purchase high risk securities such as the Puerto Rico Conservation Trust Fund, Puerto Rico Closed End Bond Funds (CEBFs), Puerto Rico Government Bonds (PRGBs), as well as preferred and common stock from banks in Puerto Rico. Popular failed to disclose to Claimant the risk associated with over-concentrating the account in these securities, which appeared diversified but in reality depended solely in the performance of Puerto Rico’s economy. Had this information and the true nature of the risk of these investments been known to Claimant or properly disclosed, he would not have invested his assets in these products.
The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of Popular in connection with the sale of securities tied to the Puerto Rico economy. Current and former customers of Popular, or other full-service brokerage firms in Puerto Rico, who purchased securities tied to the Puerto Rico economy and have information relating to the manner in which the firm represented these products, are encouraged to contact Steven D. Toskes of Klayman & Toskes, or Lcdo. Osvaldo Carlo of Carlo Law Offices, at (787) 919-7325, or visit us on the web at www.perdidasenbonospr.com.