Jose Mendez Perez Allegedly Misrepresented Closed-End Puerto Rico Funds

Jose Mendez Perez (CRD #: 2945273), a broker registered with UBS Financial Services, is the subject of his 27th investor dispute. This is according to his BrokerCheck record, accessed on August 26, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investor Allegations

On May 15, 2024, an investor alleged that Jose Mendez Perez recommended unsuitable investments in Puerto Rico closed-end funds. He allegedly overconcentrated these securities and misrepresented them as safe investments. 

There are four settled disputes alleging the same misconduct from 2020 alone. These disputes were collectively settled for $340,000. 

Puerto Rico Closed-End Funds

Major credit agencies downgraded bonds issued by Puerto Rico in 2014. This marked the beginning of a serious, nationwide debt crisis. UBS advisors allegedly continued to recommend Puerto Rico closed-end funds even after it became clear that these funds may not be in their customers’ best interests. 

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.

Misrepresentation 

FINRA Rule 2020 prohibits 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 

Jose Mendez Perez has registered with the following firms: 

• UBS Financial Services (CRD #: 8174) 
• UBS Financial Services Incorporated of Puerto Rico (CRD #: 13042) 
• Prudential Securities Incorporated (CRD #: 7471) 
• Doral Securities (CRD #: 40944) 

Kurta Law Can Help 

If you worked with Jose Mendez Perez and you have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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.