FINRA arbitration filed against RBC Capital Markets and Morgan Stanley

HOUSTON - Aug. 31, 2015 - PRLog -- he White Law Group announces that it has filed a Financial Industry Regulatory Authority (FINRA) arbitration statement of claim against RBC Capital Markets and Morgan Stanley.  This claim seeks to recover losses between $100,000 and $499,999.

The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of a Texas investor alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that RBC Capital and Morgan Stanley unsuitably invested the client in the following high-risk bond investments:

Puerto Rico Pub Bldgs Auth Government/Public Buildings Rev U 5.250%

CUSIP 745235R37
Puerto Rico Comwlth Pub Impt General Purpose G/O 2012A 5.000%

CUSIP 74514LB89
Puerto Rico Comwlth Pub Impr General Purpose G/O 2007-A

CUSIP 74514LML8
Puerto Rico Comwlth General Purpose Rev 2006 5.000%

CUSIP 745220JQ7
Puerto Rico Aqueduct & Swr Auth Rev Bonds Ser 2012A

CUSIP 745160RC7
Puerto Rico Comwlth Pub Impt Ref Ser-A 5.250%

CUSIP 74514LQA8
Puerto Rico Commwlth Pub Impt Ref Ser-B 5.875%

CUSIP 74514LVX2
Cliffs Natural Res 6.250%

CUSIP 18683KAC5
Citizens Communications Co 9.000%

CUSIP 17453BAJ0
Transocean Inc 6.800%

CUSIP 893830AT6

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.  It is alleged that RBC Capital  and Morgan Stanley failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.

The claim further alleges that it was unsuitable for RBC Capital and Morgan Stanley to overconcentrate this client in Puerto Rico bond investments because of the economic climate in Puerto Rico and the high likelihood of a Puerto Rican debt default.

Finally, it is alleged that Robert Dennison (CRD# 2674594) is the broker of record for this investor.

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional.  It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.

For more information on the claim filed by The White Law Group, please contact the firm's Chicago office at 312-238-9650.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.