The firm accepted sanctions including $50,000 fine
Oriental Financial Services was recently fined in the conclusion of a FINRA investigation alleging that the corporation withheld documents and information regarding a 2011 customer dispute in FINRA arbitration. Based in Puerto Rico, OFS also works for investors in Florida, Washington, D.C., New Jersey, New York, Texas and Virginia.
In 2011, the firm was involved in a customer dispute claiming a loss of more than $600,000, alleging a conflict of interest, which resulted in OFS being sanctioned by FINRA. The firm neither confirmed nor denied the allegations, but accepted sanctions in the form of a censure and a $50,000 fine.
According to the customer, she was misled into investing more than $1 million in the Puerto Rico & Global Income Target Maturity Fund. She claimed that the firm had a conflict of interest in that it brokered the transactions she bought into and then recommended them to her. According to the FINRA report on the matter, the customer filed a motion to compel Oriental to hand over documents and information connected to the transactions, which Oriental allegedly failed to obey, leading to the disciplinary action.
Prior to the firm’s most recent transgression, it also faced sanctions from FINRA in 2012 and 2014. In 2012, the firm refused to confirm or deny allegations, but accepted a fine of $15,000 for allegedly failing to handle customer complaints, many of which turned into securities arbitrations, and file them with FINRA in a timely and accurate manner.
In 2014, Oriental accepted a censure and fine of $245,000 in regards to allegations that the firm failed to report markups and markdowns on around 2,800 riskless transactions, a violation of both FINRA rules and the Securities Exchange Act. Oriental reported to FINRA in June 2013 that it failed to disclose about $2.9 million in markups, according to Oriental’s letter of acceptance.
FINRA also alleged that Oriental had failed to establish a system of supervision under which such incidents would be unable to occur. The case also required Oriental to submit to FINRA a proposal to amend its alleged failings in its supervisory or compliance procedures.
When companies encounter securities fraud allegations like these, investors may be significantly impacted. If you have suffered financial loss at the hands of Oriental Financial Services or any investment broker or firm, you may be entitled to loss recovery through securities arbitration.
Many investors in Puerto Rico have field securities arbitration claims against Puerto Rico brokerage firms for the alleged negligent sale of Puerto Rico municipal bonds and leveraged bond funds. In 2015, FINRA arbitration panels awarded millions of dollars to wronged investors.
Pursue your rights as an investor with Silver Law Group’s experienced securities attorneys. We work with investors across the nation on a contingent fee basis, which means no legal fees are paid unless we win your case. Consultations are free so contact us today.