SAN JUAN, Puerto Rico, Feb. 11, 2014 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, together with Carlo Law Offices, P.S.C. located in Puerto Rico, announced today that they filed a claim against Oriental Financial Services ("OFS"), a part of OFG Bancorp (NYSE:OFG), on behalf of a husband and wife from San Juan. The claim, filed with FINRA's arbitration department, seeks to recover damages sustained in the following Puerto Rico Closed-End Bond Funds ("PR CEBFs"): Puerto Rico Income Fund II and Puerto Rico Investors Tax Free Fund IV.
According to the Claim, the Claimants came to OFS after some of their CDs matured with Oriental Bank. They were referred to OFS, the financial services arm of the bank, to reinvest the money in conservative investments. OFS recommended that the Claimants invest 65% of their $1 million investment in PR CEBFs. Unbeknownst to the Claimants, and contrary to their conservative investment objective, the PR CEBFs were concentrated, illiquid, leveraged, and incorporated a high degree of risk. Unfortunately, OFS misrepresented the PR CEBFs as bonds and failed to disclose the risk associated with this type of investment. When the Puerto Rico municipal bond market declined in 2013, the value of Claimants' investment in the PR CEBFs declined about 60%. Further, with no readily available secondary market, the Claimants are forced to continue to hold the vast majority of their PR CEBFs as they decline further in value.
The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of OFS in connection with the sale of PR CEBFs to their customers. Current and former customers of OFS, or other full-service brokerage firms in Puerto Rico, who purchased PR CEBFs and have information relating to the manner in which the firm represented these Funds, are encouraged to contact Steven D. Toskes, Esquire of Klayman & Toskes, or Osvaldo Carlo, Esquire of Carlo Law Offices, at (787) 919-7325, or visit us on the web at www.nasd-law.com.
CONTACT: Steven D. Toskes, Esquire Klayman & Toskes or Osvaldo Carlo, Esquire Carlo Law Offices (787) 919-7325Source:Klayman & Toskes P.A.