Karen Degro Allegedly Engaged in Misrepresentations, Unsuitability, & Over-concentration Concerning their Investments in Closed-end Puerto Rico Funds

Karen Degro allegedly engaged in misrepresentations, unsuitability, and over-concentration concerning their investments in closed-end funds, all according to a customer complaint disclosed in publicly available records maintained by the Financial Industry Regulatory Authority (FINRA).

The investor rights lawyers at Goldman Scarlato & Penny law firm are investigating Ms. Degro’s conduct to determine whether any investors may have claims for alleged misrepresentations, unsuitability, and over-concentration. Investors may contact investor rights attorney Alan Rosca to provide information or inquire about their legal options.

Karen Degro has worked for 12 years in the securities industry at 2 firms and has 11 customer disputes, FINRA notes. The most recent complaints were filed on August 1, 2018, June 19, 2018, and February 14, 2018, and sought damages of $651,000, no damages requested, and $1,150,000, respectively, FINRA states.

Karen Degro has worked at UBS Financial Services Inc. in San Juan, Puerto Rico and at UBS Financial Services Inc. in Puerto Rico since January 1, 2006, FINRA states.

Karen Degro Has Numerous Customer Disputes Related to Puerto Rico Closed-end Funds

Karen Degro’s FINRA BrokerCheck Report showed numerous customer disputes related to Puerto Rico investments, FINRA states.

Another pending claim filed on December 21, 2018 alleges that their investments in Puerto Rico municipal bonds and closed-end funds were unsuitable, over concentrated, and misrepresented as safe investments, and has requested damages of $400,000, FINRA notes.

Brokerage firms such as UBS Financial Services, Inc. have a responsibility to adequately supervise all of their registered representatives who are employed through their firm, to prevent violations of securities rules and regulations. Brokerage firms also must initiate action to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. If and when brokerage firms fail to adequately supervise their registered representatives, they may be held liable for investment losses sustained by customers.

Securities Lawyer Investigating

The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Karen Degro’s alleged misrepresentations, unsuitability, and over-concentration concerning their investments in closed-end funds. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to securities class actions.

If you or a loved one or a friend has lost money investing with Karen Degro, you may contact attorney Alan Rosca or his colleagues for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.