HECTOR A MARTINEZ LOPEZ is currently employed as a Broker and/or Investment Adviser at KOVACK SECURITIES INC. located at 644 FERNANDEZ JUNCOS AVE., SUITE 301, SAN JUAN, PR, 00907.
HECTOR A MARTINEZ LOPEZ has worked at KOVACK SECURITIES INC. since April 10, 2015
Disclosure History
HECTOR A MARTINEZ LOPEZ has 11 Disclosure Event(s).
Date: April 23, 2018 Category: Customer Dispute Allegations: Time frame: Unspecified Claimants allege their investments in Puerto Rico closed-end funds were unsuitable, over-concentrated, and misrepresented as safe investments. Broker Comment: Representative was not named in this arbitration, and vehemently denies the allegations. Representative claims that the clients had a well diversified portfolio with managed accounts and other instruments. Further representative maintains that he advised clients to sell the positions at issue many times, but they refused due to the tax free income generated by the products.
Date: December 22, 2017 Category: Customer Dispute Allegations: Time frame: 2010-2013 According to Claimant's Counsel, UBS invested all of his family's life insurance proceeds in Puerto Rico Closed-End Funds, which were high risk, unsuitable investments. As a result, Claimant alleges that he was over-concentrated in this unsuitable investment. Damage Amount Requested: $150,000.00 Broker Comment: Mr. Martinez-Lopez is not named in this action. Representative vehemently denies the allegations. Clients sought tax free income and did not follow the representative's advice to diversify.
Date: August 07, 2017 Category: Customer Dispute Allegations: Time frame: 2009-2013 Claimants allege that their FA recommended an unsuitable concentration in risky, leveraged closed-end funds. Damage Amount Requested: $100,000.00 Broker Comment: Representative denies the allegations and believes that cleint had a diversified portfolio. Representative maintains that at the time of purchase the funds were classified as investment grade.
Date: April 08, 2016 Category: Customer Dispute Allegations: Claimant alleges his investments in Puerto Rican closed-end bond funds and a Puerto Rico bond were unsuitable, over concentrated and misrepresented. Time frame:2009-2015. Damage Amount Requested: $500,000.00 Settlement Amount: $175,000.00 Broker Comment: [customer] has been my client for many years. His investment accounts at UBS were 80% advisory with mostly US equity and 20% Puerto Rico investments. Most of the PR products were transferred from Westernbank via ACAT. We had a great relationship with frequent meetings, account reviews and financial planning. Most of those meetings were also with his CPA and a former client. Regarding the losses realized in the PR investments, they were discussed and recommended by his CPA as client needed tax relief that tax year. We realized so many gains in the advisory accounts that his CPA advised him to realize losses with the PR investments in order to offset the tax impact for the year. [customer] was always satisfied with our service, as he transferred the account with me to Kovack last year when I left UBS. This claim is false, as client did not lose money with the investment strategy as a whole.
Date: September 11, 2015 Category: Customer Dispute Allegations: Time Frame: 2009-2015. Claimaint alleges unsuitability, overconcentration, and misrepresentations involving the recommendation of closed-end funds. Damage Amount Requested: $3,400,000.00 Settlement Amount: $490,000.00
Date: January 15, 2015 Category: Customer Dispute Allegations: CLAIMANT ALLEGES THAT THEIR INVESTMENTS IN PUERTO RICO CLOSED-END FUNDS WERE UNSUITABLE, OVER CONCENTRATED AND MISREPRESENTED AS SAFE INVESTMENTS. TIME FRAME: 2011-2014. Settlement Amount: $64,618.00
Date: December 22, 2014 Category: Customer Dispute Allegations: CLAIMANT ALLEGES THAT INVESTMENT IN PUERTO RICAN CLOSED-END BOND FUND WAS UNSUITABLE, OVER CONCENTRATED AND MISREPRESENTED AS SAFE INVESTMENTS. TIME FRAME:2013-PRESENT. Damage Amount Requested: $90,000.00 Settlement Amount: $42,500.00
Date: September 22, 2014 Category: Customer Dispute Allegations: TIME FRAME: 2004-PRESENT.CLAIMANT ALLEGES MISREPRESENTATIONS AND UNSUITABILITY IN CONNECTION WITH HER PURCHASES OF BONDS AND CLOSED-END BOND FUNDS. Damage Amount Requested: $200,000.00 Settlement Amount: $75,000.00
Date: July 29, 2014 Category: Customer Dispute Allegations: TIME FRAME: 2009-2013CLAIMANTS ALLEGE UNSUITABLE RECOMMENDATIONS AND MISREPRESENTATIONS IN CONNECTION WITH THEIRPURCHASES OF CLOSED-END PUERTO RICO MUNICIPAL BOND FUNDS. Damage Amount Requested: $250,000.00 Settlement Amount: $50,000.00 Broker Comment: [Redacted] was a client since 2000 while I was working with Smith Barney. He transferred his managed account held in Smith Barney to UBS when I started working with the firm because he trusted my service. In 2009 he needed the funds in the investment account for his business and account was liquidated and disbursed. Later, he contacted me to rollover his 401K as the retirement plan account was 100% allocated in stock JNJ. We discussed our two options for PR qualified IRAs: 1) PR Closed End Funds with UBS Trust as they were approved by the OCIF for IRA accounts. 2) Universal VIA Annuity with investment options outside Puerto Rico. I gave him written information on both alternatives. The client selected the CEFs due to their historical returns and the yield based on UBS' aggressive advertising policy. He decided to invest in this product due to the limited invested options for PR IRAs account and he knew that the investment was long term as his objective was to save for retirement (approx. 11 years of time horizon).
Date: October 22, 2013 Category: Customer Dispute Allegations: CLAIMANTS ALLEGE UNSUITABLE RECOMMENDATIONS (INCLUDING ALLEGED UNSUITABLE RECOMMENDATIONS TO UTILIZE LEVERAGE) AND UNAUTHORIZED TRADING IN CONNECTION WITH THEIR PURCHASE OF CLOSED-END PUERTO RICO MUNICIPAL BOND FUNDS. TIME FRAME: 2013 Damage Amount Requested: $4,000,000.00 Settlement Amount: $600,000.00 Broker Comment: THE CLIENTS' ASSETS WERE IN A WELL DIVERSIFIED PORTFOLIO WHICH MET THEIR INVESTMENT OBJECTIVE OF INCOME. THE CLIENTS WERE FULLY INFORMED OF THE INVESTMENTS IN THEIR ACCOUNT AND THE RISKS IN CONNECTION WITH THEIR INVESTMENT STRATEGY. CLIENTS WERE ALSO PRESENTED WITH A FINANCIAL PLAN WHICH, FOR THE MOST PART, THEY ELECTED NOT TO FOLLOW.
Date: September 26, 2006 Category: Customer Dispute Allegations: CLIENTS ALLEGED THAT THEY DID NOT AUTHORIZE THE SALES OF THEIR CLOSED END FUNDS AND THE PURCHASES OF GNMAS WITH THE PROCEEDS FROM THE SALES. SEPTEMBER 2006. DAMAGES UNSPECIFIED. Broker Comment: CLAIM DENIED.
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