Trending...
- NexGen Hotels Acquires Best Western Plus in Venice, Florida
- Dogs at the Dentist: How an unlikely partnership is helping treat dental anxiety
- After The Ink Dries - Will Savers Launches The First Physical Will & Trust Storage Service
FORT LAUDERDALE, Fla. - Floridant -- Soreide Law Group has filed a FINRA arbitration on behalf of our clients (Claimants) against: WEDBUSH SECURITIES INC (Respondent)
The Claimants are part of a family trust established by their parents. The parents had been associated with WEDBUSH broker, Joel D Farnsworth, for many years.
On or about 2020, WEDBUSH broker, Joel Dale Farnsworth, began to speculate on margin almost strictly in Puerto Rico Electric Power Authority bonds or "PREPA" bonds. The lawsuit alleges that when the Claimants questioned Joel D Farnsworth about what he was doing, he allegedly said that they would receive $1.40 for every dollar invested which included 40 to 50 cents of tax-free unpaid interest. The lawsuit alleges that the Claimants' accounts became so concentrated in Puerto Rico bonds that Joel D Farnsworth told the Claimants that he required them to change the objectives of the accounts to "aggressive growth" which was allegedly in violation of the terms of the trust on file with WEDBUSH. The lawsuit states that in all the accounts there was approximately $4,000,000 in non-rated Puerto Rico bonds with over approximately $2,000,000 bought on margin. The concentrations in the accounts were as high as almost 80% in Puerto Rican bonds. On or about June of 2023 the bonds defaulted wiping out their value. The lawsuit alleges that the Claimants put their trust into the family's longtime advisor and alleges Joel D Farnsworth never discussed the downside risk or how he may have added risk by the excessive use of margin. The lawsuit alleges that the Respondent allowed their broker to construct an overly concentrated portfolio in high-risk Puerto Rican Electric bonds on margin hoping that a favorable restructuring was going to happen with no real legitimate basis other than rumor and speculation.
More on The Floridant
The lawsuit alleges that WEDBUSH and their representative's actions have caused Claimants out of pocket damages of approximately $4,200,000.00. The allegations are, negligence, breach of fiduciary duty and negligent supervision.
According to FINRA's BrokerCheck, available to the public on FINRA's website, Joel D Farnsworth, has been in the securities industry for 33 years and has been with 7 firms. He has two disclosures, 1 "Customer Dispute," and 1 "Financial." He is registered both as a broker and as a financial advisor. He is currently listed with: Wedbush Securities Inc., Los Angeles, California.
Puerto Rico's debt woes were not built overnight, but took a decade to develop. Since approximately 2007, Puerto Rico has been issuing new debt to pay off existing debts. In 2013, the New York Times reported that Puerto Rico's 3.7 million residents have accumulated an $87 billion debt, approximately $23,000 of debt per resident. Puerto Rico debt as a percentage of GDP has steadily climbed over the past ten years, making any investment into Puerto Rico bonds increasingly risky, wildly speculative and arbitrage on a potential favorable debt restructuring which never came to fruition. Since the late summer of 2013, the value of Puerto Rico municipal debt has dramatically declined. In addition, Puerto Rico's population is rapidly declining and consistent double-digit unemployment has caused the debt burden to be shouldered by a decreasing and poorer population.
More on The Floridant
Soreide Law Group has filed many lawsuits involving Puerto Rican Bond losses. If WEDBUSH SECURITIES and/or Joel D Farnsworth, or your own broker recommended Puerto Rican Bonds and you have suffered significant investment losses call Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA on a contingency fee basis, no fee to you if no recovery. https://www.securitieslawyer.com
The Claimants are part of a family trust established by their parents. The parents had been associated with WEDBUSH broker, Joel D Farnsworth, for many years.
On or about 2020, WEDBUSH broker, Joel Dale Farnsworth, began to speculate on margin almost strictly in Puerto Rico Electric Power Authority bonds or "PREPA" bonds. The lawsuit alleges that when the Claimants questioned Joel D Farnsworth about what he was doing, he allegedly said that they would receive $1.40 for every dollar invested which included 40 to 50 cents of tax-free unpaid interest. The lawsuit alleges that the Claimants' accounts became so concentrated in Puerto Rico bonds that Joel D Farnsworth told the Claimants that he required them to change the objectives of the accounts to "aggressive growth" which was allegedly in violation of the terms of the trust on file with WEDBUSH. The lawsuit states that in all the accounts there was approximately $4,000,000 in non-rated Puerto Rico bonds with over approximately $2,000,000 bought on margin. The concentrations in the accounts were as high as almost 80% in Puerto Rican bonds. On or about June of 2023 the bonds defaulted wiping out their value. The lawsuit alleges that the Claimants put their trust into the family's longtime advisor and alleges Joel D Farnsworth never discussed the downside risk or how he may have added risk by the excessive use of margin. The lawsuit alleges that the Respondent allowed their broker to construct an overly concentrated portfolio in high-risk Puerto Rican Electric bonds on margin hoping that a favorable restructuring was going to happen with no real legitimate basis other than rumor and speculation.
More on The Floridant
- Local Cremo Cigars Factory Boosts Tourism in Overtown
- Blueprint to Success: Creating a Unique and Effective Supplement Formula with Private Label Express
- CREFC Welcomes Commercial Real Estate Finance Industry to Annual Miami Conference on January 7-10, 2024
- Essential Speech and ABA Therapy to Expand Autism Services for a Growing Community
- Vero Beach Florida End Of Year Real EstateTrends
The lawsuit alleges that WEDBUSH and their representative's actions have caused Claimants out of pocket damages of approximately $4,200,000.00. The allegations are, negligence, breach of fiduciary duty and negligent supervision.
According to FINRA's BrokerCheck, available to the public on FINRA's website, Joel D Farnsworth, has been in the securities industry for 33 years and has been with 7 firms. He has two disclosures, 1 "Customer Dispute," and 1 "Financial." He is registered both as a broker and as a financial advisor. He is currently listed with: Wedbush Securities Inc., Los Angeles, California.
Puerto Rico's debt woes were not built overnight, but took a decade to develop. Since approximately 2007, Puerto Rico has been issuing new debt to pay off existing debts. In 2013, the New York Times reported that Puerto Rico's 3.7 million residents have accumulated an $87 billion debt, approximately $23,000 of debt per resident. Puerto Rico debt as a percentage of GDP has steadily climbed over the past ten years, making any investment into Puerto Rico bonds increasingly risky, wildly speculative and arbitrage on a potential favorable debt restructuring which never came to fruition. Since the late summer of 2013, the value of Puerto Rico municipal debt has dramatically declined. In addition, Puerto Rico's population is rapidly declining and consistent double-digit unemployment has caused the debt burden to be shouldered by a decreasing and poorer population.
More on The Floridant
- Jan Fritz For All Your Cudjoe Key Florida Real Estate Needs
- Government-funded IBAS Program Enters Next Phase of Silicon Interposer Development at NeoCity in Florida
- Coral Springs Center for the Arts to Present ILANA GLAZER LIVE on March 7
- Florida: MEMORANDUM
- Empowering Voices: Houston's Black Authors Illuminate the Blockchain World with 'Chain Reaction'
Soreide Law Group has filed many lawsuits involving Puerto Rican Bond losses. If WEDBUSH SECURITIES and/or Joel D Farnsworth, or your own broker recommended Puerto Rican Bonds and you have suffered significant investment losses call Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA on a contingency fee basis, no fee to you if no recovery. https://www.securitieslawyer.com
Source: Soreide Law Group PLLC
Filed Under: Financial
0 Comments
Latest on The Floridant
- Carbon Pollution Mandates – Revolt – Reduce Pollution Today Without Going Electric – ECOFuelMax
- Why It Is A Good Time To Make Big Pine Key Florida Your Home
- Tax Advantages Of Owning A Vero Beach Rental Home
- Emmy Award Winning Journalist Joins Prominent Haddonfield Real Estate Agency
- duPont REGISTRY Group names Javier Villamizar and Sandeep Chugani to Board of Directors
- Sidus Space Awarded Additional Bechtel Cable Assembly Contract for Mobile Launcher 2
- LRP's National Institute Reveals Eight Captivating Conference Symposiums
- Founder Brings Inaugural Event To Braselton Georgia At Legendary Resort and Winery
- HBCUs Among Groups Heading to The Bahamas for Track & Field Competition in March 2024
- Noble World Foundation Proposes UN Security Council Reform to Foster Global Peace
- Doral Art & Cultural Center To Be Transformed Into A Modern Garden For Doral Art & Flowers Festival
- BNP Paribas Europe's Leading Bank To Officially Open New Miami Office
- OATS from AARP Opens Senior Planet Miami: The First Technology-Themed Community Center for Older Adults in Miami
- Expert Writer Melanie Green to Host The Freelance Writing Podcast
- Gift the Power of Transformation: Mind Mastered Subscription, the Ultimate Holiday Present
- Grace Callahan Renews Pro Staff Contract with Dawn Grant Mental Training & Hypnosis Meditation
- India Fest 2024 on Jan 27, 2024 at KY Expo Center
- Avi C. Shoham Joins Kalis, Kleiman & Wolfe as an Associate
- The NEW FX10- cutting-edge industrial composite 3D printer
- Jazwares Acquires Australian Toy Distributor Big Balloon