Bringing Claims Against Santander Unit Over Puerto Rico Bond Sales
The Financial Industry Regulatory Authority (FINRA) ordered a unit of Spain’s Banco Santander SA to pay $6.4 million in settlement because of alleged supervisory failures tied to the sale of Puerto Rican municipal bonds. FINRA also alleged that the unit failed to reasonably supervise employee trading at the firm’s Puerto Rico branch. The unit also was fined for the sale of individual Puerto Rico bonds and closed-end funds. $4.3 million of the money will be paid to certain customers as restitution and $121,000 will be paid in restitution and an offer to buy back the securities sold to certain customers who were affected by the firm’s failure to supervise employee trading. Allegedly, for a 10 month period beginning in December 2012, Santander didn’t accurately reflect the dangers associated with the Puerto Rican paper in its risk-classification tool and failed to adequately supervise its customers’ use of margin and concentrated positions in their accounts. Since 2010, Moody’s Investors Service’s downgraded some of the island’s municipal bonds to just above junk status, being sold by customers and accelerated efforts to dump its inventory. This comes after a unit of UBS’ Group AG in September agreed to pay $34 million in settlements because of the sale of Puerto Rican bond funds.
Stoltmann Law Offices is currently representing dozens of investors who invested in Puerto Rican bond funds and lost money. If you or someone you know invested in the bonds, please call our securities law offices in Chicago at 312-332-4200. Please call soon as time is of the essence with these cases. The call is free with no obligation. We sue firms such as UBS on a contingency fee basis only.
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