Luis Sanchez Allegedly Misrepresented Puerto Rico Investments

Luis Sanchez (CRD #: 4267215), a broker registered with First Southern, is the subject of his 53rd investor dispute, according to his BrokerCheck record, accessed on January 19, 2024.  Keep reading if you have concerns about his alleged conduct. 

On October 28, 2023, investors alleged that Luis Sanchez 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 Luis Sanchez misrepresented the risks of Puerto Rico investments, given the uncertainties surrounding Puerto Rico’s bankruptcy and ability to pay back its debts. 

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.

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.

Previous Investor Disputes 

Luis Sanchez has a long list of investor disputes on his record, with ten from 2019 alone. These ten disputes were collectively settled for approximately $1.2 million. 

Background Information 

Luis Sanchez has passed the following exams: 

• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 

He is a registered broker in Florida and Puerto Rico. 

Besides First Southern (CRD #: 282756), Luis Sanchez has also registered with the following firms: 

• Herbert J. Sims (CRD #: 3420) 
• UBS Financial Services Incorporated of Puerto Rico (CRD #: 13042) 
• UBS Financial Services (CRD #: 8174) 
• R-G Investments Corporation (CRD #: 113293) 

Kurta Law Can Help 

If you have worked with Luis Sanchez 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.