FRANCISCO JAVIER FERNANDEZ LEON

FRANCISCO JAVIER FERNANDEZ LEON is currently employed as a Broker and/or Investment Adviser at CETERA INVESTMENT SERVICES LLC located at 8373 WEST FLAGER ST, MIAMI, FL, 33144.

FRANCISCO JAVIER FERNANDEZ LEON has worked at CETERA INVESTMENT SERVICES LLC since December 02, 2015

Disclosure History

FRANCISCO JAVIER FERNANDEZ LEON has 3 Disclosure Event(s).

Date: April 24, 2018
Category: Customer Dispute
Allegations: DATES MARCH 2011 TO JULY 2012. ALLEGES Misrepresentation, concentration, unsuitable, breach of fid duty,negligence, fraud, failure to supervise
Damage Amount Requested: $309,000.00
Broker Comment: WHILE I AM NOT A NAMED RESPONDENT IN THIS CLAIM, I AM CONFIDENT THAT THE ALLEGATIONS WILL BE FOUND TO BE WITHOUT MERIT. THE REFERENCE TRANSACTIONS IN THE CLAIM DATE BACK TO 2011 AND 2012, WHEN PUERTO RICO MUNICIPAL BONDS AND BOND FUNDS WERE RATED INVESTMENT GRADE BY ALL MAJOR CREDIT AGENCIES. I HAD NUMEROUS COMMUNICAITONS WITH THE CLIENT REGARDING THE INVESTMENTS IN THE ACCOUNT. WHEN THE PUERTO RICO ECONOMY BEGAN TO DETERIORATE, THE CLIENT DID NOT WANT TO REALIZE ANY LOSSES AND MADE AN INFORMED DECISION TO REMAIN IN THE PUERTO RICO INVESTMENTS. I NEVER MADE A HOLD RECOMMENDATION NOR USED HTE WORDS INSURED OR GUARANTEED. THE CLIENT WAS KNOWLEDGABLE AND FULLY AWARE OF THE RISKS AND REWARDS OF THE PUERTO RICO SECURITIES. FURTHERMORE, THE CLIENT WAS FULLY AWARE OF THE SERIOUS CHALLENGES FACING THE ECONOMY OF PUERTO RICO.

Date: March 09, 2016
Category: Customer Dispute
Allegations: CUSTOMER ALLEGE UNSUITABLE RECOMMENDATION.
Damage Amount Requested: $106,500.00
Settlement Amount: $17,500.00
Broker Comment: I DENY ALL ALLEGATIONS AND BELIEVE THEY WILL BE FOUND TO BE WITHOUT MERIT. THIS CLAIM REGARDING UNSUTABILITY HAVE NO MERIT AS ALL RECOMENDATONS REFLECTS CLIENT STATED INVESTMENT OBJECTIVES. AT THE TIME THE ACCOUNT WAS OPENNED AND WHEN THE PRODUCTS WERE BOUGHT, ALL PR PRODUCTS WERE RATED INVESTMENT GRADE AND WERE SUITABLE FOR HER CURRENT FINANCIAL SITUATION. IN NUMEROUS OCCASION'S WE MET TO DISCUSS THE MARKET VALUE OF THE ACCOUNT AND THE CURRENT PUERTO RICO ECONOMIC SITUATION. ALSO, IN MANY OCCASIONS I RECOMMENDED HER TO PARTICIATE IN THE REPURCAHSE PROGRAM, BUT SHE DECLINE, AND DECIDED TO HOLD ONTO HER POSITIONS. I NEVER MANIPULATED NOR CONVINCED THE CLIENT NOT TO SELL HER POSITIONS TO CUT LOSSES AT ANY MOMENT. I NEVER USED THE WORDS: "INSURED" NOR " GUARANTEED". I WILL FIGOROUSLY DEFEND MYSELF AGAINST THIS MERITLESS CLAIM. I AM NOT A RESPONDENT IN SUCH CLAIM.

Date: July 14, 2014
Category: Customer Dispute
Allegations: RESPONDENT FAILED TO BUILD A WELL MANAGED DIVERSIFIED PORTFOLIO. THE CUSTOMER WAS CONVINCED TO FOLLOW THE BROKERS' RECOMMENDATIONS AFTER BEING PROMISED BY HIM THAT THE INVESTMENTS ARE GOVERNMENT INSURED, GUARANTEED AND SAFE AND SECURE. THE BROKER OVER CONCENTRATED CLAIMANT'S ACCOUNT AND PURCHASED HIGHLY LEVERAGED PUERTO RICO BOND FUNDS WITHOUT DISCLOSING THE TRUE NATURE AND RISK OF THESE FUNDS. THE INVESTMENT WERE UNSUITABLE GIVEN THE CLAIMANTS INCOME, NET WORTH, AGE AND STATED INVESTMENT OBJECTIVES.
Damage Amount Requested: $90,000.00
Settlement Amount: $40,000.00
Broker Comment: I DENY ALLEGATIONS MENTIONED AGAINST ME, OF UNSUITABLE RECOMMENDATIONS AND MISREPRESENTATION IN CONNECTION WITH HIS PURCHASE OF PUERTO RICO FUNDS. ALTHOUGH THE CLIENT MARKED AND SIGNED A "REPRESENTATION LETTER" STATING THAT HE WAS A PR RESIDENT, I BECAME AWARE THAT HE CLIENT WAS NOT A PR RESIDENT WHEN THE CLAIM WAS RECEIVED. I EXPLAINED TO HIM IN A VERY DETALIED MANNER: FIXED ANNUITIES, BONDS AND MUTUAL BOND FUNDS. WITH THE EXCEPTION OF ANNUITIES, I CLEARLY EXPRESSED TO HIM THAT THE PRODUCTS COULD FLUCTUATE IN PRINCIPAL,THAT THE BONDS WERE BACKED BY ISSUING AGENCY/GOVERNMENT PAYING CAPACITY; THAT THE PR MUTUAL BOND FUNDS INVESTED APPROXIMATELY 67% IN PR BONDS AND 33% IN US BONDS AND THAT DIDN'T HAVE A MATURITY DATE. THAT THE FUNDS GENERATED A HIGHER FLOW OF INCOME BECAUSE OF THE LEVERAGE STRATEGY EMPLOYED BY THE FUND MANAGER.I NEVER USED THE WORDS: "INSURED" NOR " GUARANTEED" AND NEVER TRIED TO CONVINCE THE CLIENT TO INVEST. ALSO, I EXPLICITY TOLD HIM THAT THE PR MUTUAL BOND FUNDS WERE EXCLUSIVELY FOR PR RESIDENTS AND THAT THEY CANNOT BE OFFERED TO NON- PR RESIDENTS. THE PRODUCTS OFFERED TO THE CLIENT WERE LOCAL PRODUCTS BECAUSE OF THE FOLLOWING REASONS: CLIENT WANTED TAX FREE INCOME, HIGHER LEVEL OF CURRENT MONTHLY INCOME AND CLIENT DIDN'T WANT TO INCLUDE STOCK OR STOCK MUTUAL FUNDS TO THE PORTFOLIO. AT THE MOMENT OF OPENING THE ACCOUNT AND WHEN THE PRODUCTS WERE BOUGHT, ALL PR PRODUCTS WERE RATED INVESTMENT GRADE.CLIENT WAS PROVIDED WITH ONLINE ACCESS TO HIS ACCOUNT AND HE WAS FULLY AWARE OF THE PRICE FLUCTUATIONS ON A DAILY BASIS AND ALSO PROVIDED HIM WITH THE MSRB EMMA WEBSITE IN ORDER TO FOLLOW THE PREPA BOND PRICES AND CONTINUING DISCLOSURE. ALSO, WE MAINTAINDED CONSTANT COMMUNICATION VIA PHONE CALLS, EMAIL AND TEXT MESSAGE. I NEVER MANIPULATED NOR CONVINCED THE CLIENT NOT TO SELL HIS POSITIONS TO CUT LOSSES AT ANY MOMENT.The customer agree not to oppose to the expungement of this claim against OFS and Fernandez. The expungement hearing is pending.

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