The Financial Industry Regulatory Authority (FINRA) has said that it is examining the trading in the $3.5 billion of general-obligations that Puerto Rico sold this month in the largest ever high yield offering. These bonds are clearly not for the small investor.
Puerto Rico sold the debt on March 11th., giving the island enough cash to pay it's bills through June 2015, as they work to revive Puerto Rico's shrinking economy according to a recent article in Bloomberg. The securities will mature in July of 2035 and they are priced to yield approximately 8.73 percent.
Hedge funds made up the majority of buyers in this tax-exempt deal, stating on the sale documents that “the bonds shall be issued in the minimum denomination of $100,000 and any integral multiple of $5,000 in excess thereof,” unless one of the three largest rating companies raises Puerto Rico to investment grade.
However, since March 11th., there have been at least 75 transactions less than $100,000, from data that was compiled by Bloomberg. FINRA is aware of this situation and examining the bond trading activity. These trades should be for the institutional purchasers or people who can afford the risk. They should be able to invest at least $100,000 minimum.
A notice has been released by the Securities Industry and Financial Market Association, a New York-based trade group representing banks and investors, warning firms about trading the Puerto Rico bonds below $100,000.
Soreide Law Group is actively filing cases against brokers for losses sustained by Puerto Rican bond investments. Call (888) 760-6552 if you invested in Puerto Rico Bond Funds.
Pending customer claims on BrokerCheck name Michael Graham (CRD 3263494) and list LPL Financial as the firm. Each claim is pending and unproven, and no arbitrator has ruled on any of them. The customers allege that Graham misrepresented guaranteed principal and returns on a secured loan related to a real estate deal.
An SEC decision involving Titan Securities (CRD 131392) of Plano, Texas became final on August 7, 2026, according to FINRA's October 2026 Disciplinary and Other FINRA Actions report. The decision fined the firm $50,000. The record lists the firm as JTA Securities Management, Inc. dba Titan Securities.
Every settled customer dispute on Peter Maller's BrokerCheck report names Lincoln Financial as the firm. Maller holds CRD number 2322403. The newest dispute, filed on March 5, 2024, settled on August 15, 2024 for $12,500 against alleged damages of $50,000. The claimants alleged that the representative represented an oil and gas investment as safe.
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