Investors Allege Ricardo Eboli-Kodesh Misrepresented Puerto Rican Bonds and Funds

Ricardo Eboli-Kodesh (CRD #: 4313868), a broker registered with UBS Financial Services, is the subject of a pending dispute, according to his BrokerCheck record, accessed on May 18, 2023. Keep reading to learn more about his alleged conduct as a broker.

Investor Disputes

On April 3, 2023, multiple investors alleged that Ricardo Eboli-Kodesh recommended unsuitable investments in Puerto Rico municipal bonds and closed-end funds, misrepresented these investments as safe, and overconcentrated their accounts. They seek $200,000 in damages in this pending dispute.

From 2015-2020, investors filed 21 disputes alleging that Ricardo Eboli-Kodesh made unsuitable investment recommendations of Puerto Rican municipal bonds and/or closed-end funds.

Many of these disputes also alleged that he overconcentrated them in these investments and misrepresented the risk involved. These 21 disputes were settled for a total of $10,721,500.

From 2015-2018, investors filed 27 disputes alleging that he recommended and/or misrepresented unsuitable municipal bonds and/or closed-end funds. These disputes were settled for a total of $20,267,601.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile, which describes characteristics such as their age, risk tolerance, and tax status.

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

FINRA Rule 2020

FINRA Rule 2020 bans the use of deception, manipulation, and other fraudulent tactics to influence investors’ decisions. Misrepresenting an investment’s requirements, limitations, or other features violates this rule.

Arbitrations Involving UBS Financial Services

On November 10, 2016, Ricardo Eboli-Kodesh was named in a complaint filed against UBS Financial Services Incorporated of Puerto Rico. The complaint alleged fraud, failure to supervise, negligent misrepresentation and omission, and breach of contract.

Investors further alleged overconcentration and other violations of the suitability rule with regard to Puerto Rican closed-end funds and municipal bonds. This complaint was settled for $30,088,725. You can read a copy of the arbitration award here.

On March 11, 2016, Ricardo Eboli-Kodesh was named in a complaint filed against UBS Financial Services and UBS Financial Services Inc. of Puerto Rico.

The complaint alleged fraud, breach of contract, negligent supervision, and other negligence, as well as violations of the Puerto Rico Uniform Securities Act and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

This complaint was settled for $5 million. You can read the full arbitration award here.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires that firms establish supervisory systems to ensure their compliance with securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 forbids the use of deceptive, manipulative, and otherwise fraudulent practices relating to the purchase and sale of securities. Rule 10b-5 extends this to include fraudulent schemes, untrue statements, and omissions of fact.

What is broker negligence?

Brokers may act in many negligent ways. Typical examples include misrepresentations or omissions of fact, unsuitable investment recommendations, and failure to supervise other brokers.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration.

What are Blue Sky Laws?

Blue sky laws are state securities regulations that provide investors with an extra layer of protection against fraud. They frequently also define what investments must register with the state securities board.

Background Information

Ricardo Eboli-Kodesh has passed the following exams:

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

Ricardo Eboli-Kodesh is a registered broker in 17 states as well as the District of Columbia, Puerto Rico, and the Virgin Islands. He is also a registered investment adviser in Puerto Rico.

He has also worked for UBS Financial Services Incorporated of Puerto Rico (CRD#:13042) and Oriental Financial Services Corporation (CRD#:29753).

Kurta Law Can Help

If you worked with Ricardo Eboli-Kodesh and you have concerns about your investments,  contact a New York investment fraud lawyer today for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.

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.