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Investors Seek $1.4 Million in Damages in Jose Lecaroz Disputes

May 5, 2022 Unsuitable Investments

Jose Lecaroz (CRD #: 4321519), a broker registered with Nationwide Planning Associates, is the subject of several active disputes, according to his BrokerCheck record, accessed on April 25, 2022. If you have questions about Jose Lecaroz’s conduct as a broker, read on.

Investor Disputes

Disputes filed between 2018-2022 allege that Jose Lecaroz recommended unsuitable investments in Puerto Rico closed-end funds, as well as misrepresenting and over-concentrating those investments. Investors seek $1,410,000 in damages in these pending disputes.

In disputes filed between 2015-2018, investors make similar allegations of unsuitability, over-concentration, and misrepresentation of Puerto Rico closed-end funds and bonds. These disputes were collectively settled for $732,500.

On December 20, 2018, trustees alleged Jose Lecaroz failed to disclose the risks of investing in Puerto Rico closed-end funds. Trustees also allege that this investment was unsuitable and their accounts were over-concentrated in these funds. Trustees sought $1,050,733.87 and received $560,000 in damages.

FINRA Rule 2111

Per FINRA Rule 2111, brokers must tailor their investment recommendations to clients’ profiles. Investors’ profiles include information such as their age, risk tolerance, and financial goals.

Investment recommendations can be unsuitable in several ways, including failing to diversify clients’ accounts—this is a strategy with a high degree of risk, making it unsuitable for most investors.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of deception, manipulation, and other fraudulent means of influencing investors’ decisions. Misrepresentation or omission of information falls under this rule.

Background Information

Jose Lecaroz 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 6 - Investment Company Products/Variable Contracts Representative Examination

Jose Lecaroz is a registered broker in Puerto Rico.

He has also worked for the following firms:

  • Aegis Capital (CRD#:15007)
  • UBS Financial Services (CRD#:8174)
  • UBS Financial Services Incorporated of Puerto Rico (CRD#:13042)
  • R-G Investments Corporation (CRD#:113293)
  • Santander Securities (CRD#:41791)
  • Oriental Financial Services (CRD#:29753)

Kurta Law Can Help

If you worked with Jose Lecaroz 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.