SAN JUAN, Puerto Rico, April 9, 2014 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.perdidasenbonospr.com, together with Carlo Law Offices, P.S.C. located in Puerto Rico, announced today that they filed a claim against Morgan Stanley (NYSE:MS), on behalf of a husband and wife in Puerto Rico who sustained substantial losses in Puerto Rico Bonds. The claim, filed with FINRA's arbitration department, seeks to recover damages of $200,000.
According to the claim, instead of creating a safe, low-risk fixed-income portfolio, Morgan Stanley's advisors recommended that Claimants invest all their funds into three (3) Puerto Rico municipal bonds: Puerto Rico Electric Power Authority, Puerto Rico Public Finance Corp. and Puerto Rico Sales Tax Financing Corp. Unfortunately, Morgan Stanley failed to disclose to the Claimants the risk associated with concentrating all of their assets into Puerto Rico bonds, and the firm failed to disclose the risk associated with long duration bonds and low credit ratings. Instead, Morgan Stanley led the Claimants to believe that the bonds were constitutionally guaranteed investments by the Commonwealth of Puerto Rico.
The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of Morgan Stanley in connection with the sale of Puerto Rico bonds and bond funds to their customers. Current and former customers of Morgan Stanley, or other full-service brokerage firms in Puerto Rico, who purchased Puerto Rico bonds or bond funds, and have information relating to the manner in which the firm represented these products, are encouraged to contact Steven D. Toskes of Klayman & Toskes, or Lcdo. Osvaldo Carlo of Carlo Law Offices, at (787) 919-7325, or visit us on the web at www.perdidasenbonospr.com.
Source:Klayman & Toskes P.A.