Erez Law recently filed a FINRA arbitration claim against Raymond James & Associates, Inc. on behalf of a retired customer who suffered losses due to investments in securities sold to him by Raymond James & Associates, Inc. in Biscayne Capital BVI and/or Biscayne Capital related companies.
The claim alleges that Raymond James & Associates, Inc. entered into a relationship with Biscayne Capital BVI and/or the Biscayne Capital related companies and served as the brokerage firm for the Biscayne Companies’ offshore customers. Biscayne Capital BVI and/or the Biscayne Capital related companies had a network of salespeople acting as financial advisors including Natalia Rubio and Miguel Verdias who operated out of Montevideo, Uruguay and lacked any U.S. securities licenses. It is alleged that Raymond James & Associates, Inc. prominently displayed Rubio and Verdias as financial advisors, despite their lack of any credentials, training, license and/or registration.
In August 2011, IA Capital Structures PLC was formed in Ireland and began issuing notes to non-US investors in or about September 2015. The funds raised from the sale of the IA Capital Notes were to invest in the Biscayne Companies. Biscayne Capital BVI and/or the Biscayne Companies sold in excess of $50 million and possibly much more of the Biscayne Capital Notes, which included SG Strategic Income Ltd. notes, SBH Diversified Preferred Income notes, ORC Senior Secured Ltd. (currently known as Diversified Real Estate Development Ltd.), and Preferred Income Collateralized Interest Ltd. notes to Raymond James & Associates, Inc. customers.
Unbeknownst to the Erez Law client, the IA Capital Note held in the Raymond James & Associates, Inc. account was speculative at best or more likely issued in a Ponzi-like manner to raise new funds to pay off prior investors and/or to raise funds for the issuers of the SG Strategic Income Ltd. notes, SBH Diversified Preferred Income notes, ORC Senior Secured Ltd. (currently known as Diversified Real Estate Development Ltd.), and Preferred Income Collateralized Interest Ltd. notes who misappropriated the proceeds.
Raymond James & Associates, Inc. terminated the relationship with Biscayne Capital BVI and/or the Biscayne Capital related companies in 2016. Raymond James & Associates, Inc. made a business decision to have a relationship with an offshore non-FINRA member and now it must be held accountable for its decision and the damages it caused to the Erez Law client. By the time Raymond James & Associates, Inc. caused the client’s account to close, the client’s IA Capital Note was in fact worthless.
By acting as the claimants’ broker-dealer and other related actions, Raymond James & Associates, Inc. owed their customers certain duties and legal obligations. The claimant has alleged that Raymond James & Associates, Inc. violated those duties, amongst other things, and is legally liable for the claimants’ losses.
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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