Luke Johnson Allegedly Recommends Alleged Ponzi Scheme GPB

The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Gerardo Latimer-Janer. According to his publicly available FINRA BrokerCheck report, Gerardo Latimer-Janer has been the subject of multiple customer disputes over the course of his career.

Gerardo Latimer-Janer is a Florida based securities broker. He has worked in the securities industry for twenty years. During his career, he has been registered with seven different securities firms.

His Registrations

  • MDS Securities Incorporated (1996-1997)
  • Salomon Smith Barney (1998-2001)
  • Citicorp Financial Services Corporation (2001-2003)
  • BBVA Securities of Puerto Rico (2003-2006)
  • Consultiva Securities (2007-2010)
  • UBS Financial Services (2010-2014)
  • Morgan Stanley (2014-Present)

The Allegations

  • In September 2015, customers alleged that Gerardo Latimer-Janer made material misrepresentations, recommended unsuitable investments, and over-concentrated their account in Puerto Rico municipal bonds, closed-end funds, and preferred stocks. This case was settled for $209,000 in damages.
  • In March 2018, an attorney, on behalf of a customer alleged that Gerardo Latimer-Janer recommended unsuitable investments, made material misrepresentations, and over-concentrated their account in Puerto Rico municipal bonds. This case was settled for $450,000 in damages.
  • In December 2018, a claimant, a credit union, alleged that its funds were invested in unsuitable Puerto Rico municipal bonds by Gerardo Latimer-Janer. The claimant also alleged that the investments were misrepresented as safe and low-risk. This case is currently pending. The claimant is seeking $4 million in damages.
  • In January 2019, a claimant alleged that their Puerto Rico bonds purchased on Gerardo Latimer-Janer’s recommendation were unsuitable. They also alleged that Latimer-Janer misrepresented the investments as safe. This case is currently pending. The claimant is seeking $1 million in damages.
  • In April 2019, more customers alleged that Gerardo Latimer-Janer recommended they invest in unsuitable Puerto Rico bonds and that he misrepresented the risks of the investment. This case is currently pending. The customers are seeking $3 million in damages.

What Does This Mean?

These Puerto Rico bonds and bond funds proved to be very alluring to investors for a few reasons. The main one being that these products were actually triple tax exempt. Most municipal bonds issued are subject to federal, state, and local taxes; however, since Puerto Rico is not technically a state, it was able to issue bonds exempt from federal, state, and local taxes. Normally, in order to take advantage of a bond’s tax benefits, the purchaser has to reside in the where the bond is purchased; however, this was not the case with these Puerto Rico products. Investors all across the United States could take advantage of these product’s tax benefits. However, these tax breaks greatly contributed to Puerto Rico’s financial decline and the territory eventually filed for bankruptcy and thus defaulted on all of the issued bonds–making them essentially worthless.

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 Gerardo Latimer-Janer, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.