Carlos Rodriguez de Gracia is the Subject of a Puerto Rico Closed-End Fund Dispute

Carlos Rodriguez de Gracia (CRD #: 4888179), a broker registered with Stonecrest Capital Markets, is the subject of an investor dispute. This is according to his BrokerCheck, accessed on June 21, 2024. Investors should know that there are 23 investor disputes on his record. 

Investor Allegations 

On April 24, 2024, an investor alleged that Carlos Rodriguez de Gracia recommended that he invest in and hold Puerto Rico closed-end funds. The investor alleged that this recommendation was unsuitable and his UBS account was over-concentrated in these investments. He also allegedly misrepresented the risks of investing in and concentrating in Puerto Rico investments. 

Previous Investor Disputes 

There are four settled disputes from 2019 alone. These disputes all alleged Carlos Rodriguez de Gracia recommended unsuitable Puerto Rico closed-end funds. The dispute was collectively settled for $335,916.67. 

Puerto Rico Closed-End Funds

Major credit agencies downgraded bonds issued by Puerto Rico in 2014. This marked the beginning of a serious, nationwide debt crisis. UBS advisors allegedly continued to recommend Puerto Rico closed-end funds even after it became clear that these funds may not be in their customers’ best interests. 

Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. This rule also prohibits overconcentration, as placing too much of a portfolio in a single sector exposes the investor to unnecessary risk. 

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 

Carlos Rodriguez de Gracia has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 

He is a registered broker and investment adviser in Puerto Rico. He is also a registered broker in Florida, Georgia, and Texas. 

Carlos Rodriguez de Gracia has registered with the following firms: 

• Stonecrest Capital Markets (CRD #: 39616) 
• Stonecrest Advisors (CRD #: 142095) 
• Herbert J. Sims & Co. (CRD #: 3420) 
• UBS Financial Services (CRD #: 8174) 
• UBS Financial Services Incorporated of Puerto Rico (CRD #: 13042) 
• Oriental Financial Services Corp. (CRD #: 29753) 

Kurta Law Can Help 

If you have worked with Carlos Rodriguez de Gracia and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors 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. Do not let securities fraud go unchecked. Start your recovery process today.