Aishka Lugo Allegedly Recommended Unsuitable Puerto Rico Bonds

Aishka Lugo (CRD #: 4419998), a broker registered with UBS Financial Services, is facing a seven-figure investor dispute. This disclosure appears on her BrokerCheck record, accessed on November 17, 2023. There are a total of 21 investor disputes on her record – an especially high number. Keep reading if you have questions about her alleged conduct. 

On October 12, 2023, investors alleged that Aishka Lugo recommended unsuitable Puerto Rico closed-end funds and Puerto Rico municipal bonds. They alleged that the investments were over-concentrated and that the risks associated with these types of investments were misrepresented. 

The investors are seeking $1.5 million. 

Puerto Rico Bonds 

Many other disputes on Aishka Lugo’s record allege that she recommended unsuitable Puerto Rico-based investments. Due to Puerto Rico’s unstable financial outlook, these investments were high-risk.

What is a Closed-End Fund? 

Closed-end funds are companies that offer shares during an initial public offering and often invest in risky products. They come with regular distributions but also have high fees that can negate any returns, making them unsuitable for many investors. 

FINRA Rule 2111 – Unsuitable Overconcentration 

FINRA Rule 2111 prohibits unsuitable investment recommendations. Overoncenrated investments are often unsuitable because they expose the investor to unnecessary risk. Brokers are required to consider their investor’s risk tolerance when they make recommendations. 

Diversified portfolios expose investors to a broader swath of the market and lessen the chance that an investor will suffer major losses following a drop in share prices for a particular stock or sector. Investors who rely on brokers for recommendations may be able to recover losses following overconcentration by pursuing FINRA arbitration.

Misrepresentation 

FINRA Rule 2020 forbids the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

Background Information 

Aishka Lugo has passed the following exams: 

• Series 66 – Uniform Combined State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 

She is a registered broker and investment adviser in Florida. She is also a registered broker in Kansas, New Jersey, North Carolina, Pennsylvania, and Puerto Rico. 

During her 22 years of experience, Aishka Lugo has registered with four firms: 

• UBS Financial Services (CRD #: 8174) 
• UBS Financial Services Incorporated of Puerto Rico (CRD #: 13042) 
• R-G Investments Corporation (CRD #: 113293) 
• Salomon Smith Barney (CRD #: 7059) 

Kurta Law Can Help

If you worked with Aishka Lugo and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.