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FINRA Broker Allegations

Allegations against: Gustavo Velazquez Melendez

Allegation type: Customer Dispute

Allegation status: Settled

The allegations read: The customer alleges unsuitable advice and investment of their brokerage accounts to puerto rico municipal bonds (particularly, puerto rico electric & power authority or prepa bonds), misrepresentation and failure to disclose the risks of puerto rico municipal bonds and bond funds and failing to reduce their risk and exposure from puerto rico bonds including prepa bonds, as the puerto rican economy suffered a severe downturn and its credit ratings collapsed.

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