The law firm of Oakes & Fosher is presently investigating the possible misconduct of former securities broker Eric Stubbe. According to his publicly available FINRA BrokerCheck report, Eric Stubbe has been the subject of numerous customer disputes in connection with Puerto Rico municipal bonds and closed-end funds.

Eric Stubbe was a Massachusetts based securities broker. He worked in the securities industry for twenty-nine years. During his career, he was registered with three different securities firms.

His Registrations

  • Kidder, Peabody & Co. (1986-1987)
  • UBS Financial Services (1987-2006)
  • Santander Securities (2006-2016)

The Allegations

  • In January 2015, a customer alleged that the investments she purchased had been misrepresented as safe and guaranteed by Eric Stubbe. She claimed that Stubbe never made her aware of the risks associated with those particular investments. This case was settled for $20,000.
  • In February 2015, a customer alleged that Eric Stubbe engaged in fraud, recommended unsuitable securities, handled their account negligently, breached contract, and breached his fiduciary duty all in connection with Puerto Rico municipal bonds and closed-end funds. This case was settled for $350,000 in damages.
  • In November 2016, a customer alleged that Eric Stubbe breached his fiduciary duty, engaged in fraud, violated securities laws, handled their account negligently, breached contract, and recommended and over-concentrated their account in unsuitable Puerto Rico municipal bonds and closed-end funds. This case was settled for $900,000 in damages.
  • In May 2018, customers alleged that Eric Stubbe recommended unsuitable securities, over-concentrated their accounts, breached contract, breached his fiduciary duties, handled their account negligently, and violated Puerto Rico and federal securities laws. This was also in connection with Puerto Rico municipal bonds and closed-end funds. This case is currently pending, the customer is seeking $338,040 in damages.
  • In July 2019, a customer alleged that Eric Stubbe recommended unsuitable securities, over-concentrated their account, violated securities laws and rules, engaged in fraud, breached his fiduciary duty, beached contract, and engaged in wanton negligence all in connection with Puerto Rico municipal bonds and closed-end funds. This case is currently pending. The customer is seeking $1.2 million in damages.

These are just some of the claims filed against Santander Securities due to the alleged actions of former securities broker Eric Stubbe.

What Does This Mean?

Puerto Rico municipal bonds and closed-end funds were pretty popular for a period of time, due to the associated tax breaks. Since Puerto Rico is not a state, the bonds there are triple tax exempt. This means, that they are free from federal, state, and local taxes. For most tax exempt bonds, the bond holder is supposed to be local to where the bond is issued in order to receive the tax breaks; however, this is not true for Puerto Rico bonds. The bond holder can receive the benefits from the tax exemption wherever they may be stationed. This proved to be highly detrimental to Puerto Rico as the territory found itself in a debt crisis. This eventually led to them defaulting on these bonds and losing millions of dollars for investors.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Eric Stubbe, please contact Oakes & Fosher for a free and private consultation.