Haydee Delgado Allegedly Recommended Unsuitable Puerto Rico Bonds
Haydee Delgado (CRD #: 1619094), a broker registered with UBS Financial Services, is the subject of a seven-figure investor dispute. This disclosure appears on his BrokerCheck record, accessed on November 17, 2023. Keep reading if you have questions.
On October 12, 2023, investors alleged that Haydee Delgado made an unsuitable recommendation to invest in and hold Purto Rico closed-end funds. They further alleged that she misrepresented the risks of investing in and concentrating a portfolio in Puerto Rico investments.
The investor is seeking $1.5 million.
Earlier Investor Disputes
Three other investor disputes involving Puerto Rico bonds have collectively settled for $365,000.
Puerto Rico Bonds
Many other disputes on Haydee Delgado’s record allege that she recommended unsuitable Puerto Rico-based investments. Due to Puerto Rico’s unstable financial outlook, these investments were high-risk.
What is a Closed-End Fund?
Closed-end funds are companies that offer shares during an initial public offering and often invest in risky products. They come with regular distributions but also have high fees that can negate any returns, making them unsuitable for many investors.
FINRA Rule 2111 – Unsuitable Overconcentration
FINRA Rule 2111 prohibits unsuitable investment recommendations. Overoncenrated investments are often unsuitable because they expose the investor to unnecessary risk. Brokers are required to consider their investor’s risk tolerance when they make recommendations.
Diversified portfolios expose investors to a broader swath of the market and lessen the chance that an investor will suffer major losses following a drop in share prices for a particular stock or sector. Investors who rely on brokers for recommendations may be able to recover losses following overconcentration by pursuing FINRA arbitration.
Haydee Delgado has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
She is registered as both a broker and an investment adviser in Florida and Puerto Rico.
During her 26 years of experience, she has registered with three firms:
- UBS Financial Services (CRD #: 8174)
- UBS Financial Services Incorporated of Puerto Rico (CRD #: 13042)
- CitiGroup Global Markets (CRD #: 7059)
Kurta Law Can Help
If you worked with Haydee Delgado and have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want 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.