Scarlett & Hirsch, P.A. is investigating claims surrounding the sale of municipal bonds issued by Puerto Rico. On Monday August 3, 2015 Puerto Rico failed to meet a $58 million bond payment placing it into default, thereby increasing concerns that the U.S. territory will not be able to satisfy its $72 billion in debt obligations.
Puerto Rico’s default does not come as a surprise. Wall Street has been expecting a possible default for the past two years, as Puerto Rico’s debt has been accumulating to unsustainable levels for more than ten years. Last month Puerto Rico’s Governor stated that its $72 billion in debt could not be paid back.
Persistently weak economic performance has eroded the tax base. The government and other agencies has piled on debt from eager lenders to maintain public spending.
Puerto Rico has more than three times the debt per resident as the most heavily indebted U.S. states.
Puerto Rican bonds have been recommended to investors of municipal-bonds for their high yields and tax-free status. However, many investors do not realize or understand that these higher yields equate to a higher risk of loss.
If you lost money in your investment portfolio as a result of investing in Puerto Rican issued municipal bonds you may be able to recover your loses through securities arbitration before FINRA.
Scarlett & Hirsch, P.A. has over thirty-five years of combined experience representing investors who have lost money as a result of unsuitable investment advice and misrepresentations. Our consultations are free of charge and no attorney’s fees are collected unless we are able to obtain a recovery on your behalf (costs are additional). Please contact us to discuss your rights (561) 278-6707.