Hector Mercado Allegedly Overconcentrated Clients in Unsuitable Investments

Hector Mercado (CRD #: 1757136), a broker registered with UBS Financial Services, allegedly recommended and misrepresented unsuitable investments, according to his BrokerCheck record, accessed on May 25, 2023. Keep reading if you have questions about his alleged conduct as a broker.

Investor Disputes

On March 23, 2023, an investor alleged that Hector Mercado made unsuitable recommendations to invest in and hold Puerto Rican closed-end funds, and also overconcentrated the client in these investments.

The client further alleges that Hector Mercado misrepresented the risks associated with these funds and his concentration in them. The investor seeks $500,000 in damages in this pending dispute.

Two disputes, filed on May 3, 2017, and June 11, 2018, similarly alleged that Hector Mercado recommended unsuitable Puerto Rican bonds and closed-end funds, overconcentrated clients in these investments, and made misrepresentations.

These disputes were settled for a total of $152,500.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must consult an investor’s profile, which describes their age, risk tolerance, and other information.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration and potentially recover their losses.

FINRA Rule 2020

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.

Background Information

Hector Mercado has passed the following exams:

• 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

Hector Mercado is a registered broker in 36 states and Puerto Rico.

He has also worked for the following firms:

• UBS Financial Services Incorporated of Puerto Rico (CRD#:13042)
• Popular Securities (CRD#:8096)
• Marketing One Securities (CRD#:16611)
• PaineWebber (CRD#:8174)
• Smith Barney Shearson (CRD#:7059)     
• Lehman Brothers (CRD#:7506)

Kurta Law Can Help

If you worked with Hector Mercado and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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 and 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.