Investor Alleges Manuel Melendez Solicited Her for Unsuitable Outside Business

Manuel Melendez (CRD #: 4648278), a broker registered with UBS Financial Services, allegedly engaged in an unapproved outside business activity, according to his BrokerCheck record, accessed on March 23, 2023. Keep reading if you have questions about his alleged conduct as a broker.

Pending Investor Disputes

On January 19, 2023, an investor alleged that Manuel Melendez borrowed money from her and/or solicited her to invest in unsuitable outside business ventures not approved by UBS Financial Services from 2019-2022.

The client further alleges that the firm failed to supervise him. The client seeks $448,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile. These profiles contain information such as investors’ financial goals, risk tolerance, and age.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 3270

FINRA Rule 3270 requires brokers to inform their firm and receive approval for any business activities they engage in beyond their firm.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must ensure that supervisory personnel have the training or experience necessary for their role.

Other business activities

Manuel Melendez’s detailed BrokerCheck Report currently lists one outside business activity: he is the sole proprietor of Trinity Media Group, a company that owns digital billboards.

Settled and Denied Disputes

Six disputes filed in 2018 and 2019 alleged that Manuel Melendez made unsuitable recommendations of Puerto Rico closed-end funds and municipal bonds, overconcentrated clients in them, and misrepresented these products.

Investors alleged that this misconduct occurred during a collective time frame spanning 2007-2018. They received settlements totaling approximately $305,200.

On July 12, 2018, an investor filed a dispute alleging that Manuel Melendez informed them that a Puerto Rican investment product had no risk of loss whatsoever. The client alleged that this occurred between July 10, 2012, and July 11, 2018. The dispute was denied by the firm.

However, investors should be aware that firms can deny disputes without an outside review. Investors can still pursue FINRA arbitration following a denial and may be able to recover their losses.

FINRA Rule 2020

The misrepresentation of information related to investments violates FINRA Rule 2020, which forbids the use of manipulative, deceptive, and otherwise fraudulent tactics to influence the purchase and sale of securities.

FINRA Rule 2150

FINRA Rule 2150 prohibits brokers from guaranteeing investors against loss.

Background Information

Manuel Melendez has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Manuel Melendez is a registered broker in 29 states as well as the District of Columbia and Puerto Rico. He is also a registered investment adviser in Florida, Texas, and Puerto Rico.

He has also worked for UBS Financial Services Incorporated of Puerto Rico (CRD#:13042) and Popular Securities (CRD#:8096).

Kurta Law Can Help

If you worked with Manuel Melendez 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.