Fidel Trejo Allegedly Over-Concentrated Customer in Puerto Rico Closed-End Funds

Fidel Trejo (CRD #: 1251352), a broker registered with UBS Financial Services, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on February 2, 2024. Keep reading if you have questions regarding his alleged conduct. 

On October 12, 2023, investors alleged that Fidel Trejo recommended to invest in and hold Puerto Rico closed-end funds and Puerto Rico municipal bonds. The investor alleges that these recommendations were unsuitable and that their portfolio was overconcentrated in these investments. They further allege Fidel Trejo misrepresented the risks of concentrating their portfolio in Puerto Rico investments. 

The investor is seeking $1.5 million. 

Previous Dispute

There is a similar dispute dated September 23, 2019. The investor sought $160,000 and the dispute settled for $60,000. 

Misrepresentation 

FINRA Rule 2020 forbids the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

FINRA Rule 2111 – Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. This rule also prohibits overconcentration, as placing too much of a portfolio in a single sector exposes the investor to unnecessary risk. 

Background Information 

Fidel Trejo has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 10 General Securities Sales Supervisor – General Module Examination 
• Series 9 General Securities Sales Supervisor – Options Module Examination 

He is a registered broker and investment adviser in Texas. He is a registered broker in seven states besides Texas and Puerto Rico. 

Kurta Law Can Help 

If you have worked with Fidel Trejo and you have concerns about your investments, do not hesitate to contact us at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.