There are options for customers former Oppenheimer & Co. Inc. financial advisor Paul Dangelo (CRD# 1837472) who is alleged to recommend unsuitable Puerto Rico bonds that resulted in investment losses. Dangelo was registered with Oppenheimer & Co. Inc. in Saddle Brook, New Jersey from February 2015 to February 2018, when he was terminated regarding, “Failed to inform the firm about a regulatory inquiry.”
Previously, Dangelo was registered with Wells Fargo Advisors, LLC in New City, New York from 2005 to March 2015, when he was terminated regarding, “Wells Fargo Advisors, LLC (“WFA”) commenced an internal investigation after one of FA’s clients indicated that FA made trades in her account without her knowledge or consent. FA resigned before WFA completed its investigation.”
Dangelo has been the subject of six customer complaints between 1999 and 2017, four of which were denied, according to his CRD report. Two settled complaints from 1999 and 2009 are regarding excessive trading.
Three recent denied customer complaints are regarding losses due to investments in high-risk Puerto Rico bonds. Customers included 70-year-old retirees and other investors who were looking for safe and secure investments and to generate passive income. Instead, it is alleged that Dangelo recommended these customers unsuitable Puerto Rico bonds.
Puerto Rico suffers from long-term financial and economic deficiencies that rendered its credit increasingly more speculative. The deterioration of Puerto Rico’s financial condition culminated in its debt being downgraded to junk status or speculative (below investment grade). For the past several years, Puerto Rico has been struggling with compounding debt and economic decline. As a result, the value of Puerto Rico’s municipal tax-free bonds has considerably fallen. Since September 2013, when the steep decline in Puerto Rico bond values began, investors holding these bonds have suffered massive losses. In May 2017, Puerto Rico filed for bankruptcy protection from creditors in what is being described as the largest municipal bankruptcy filing in history.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Oppenheimer & Co. Inc. may be liable for investment or other losses suffered by Dangelo’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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