National investment fraud attorneys KlaymanToskes, has taken legal action against Nationwide Planning Associates, Inc. after financial advisor Jose M. Candelario Padilla’s (CRD# 4847560) recommendations caused over $500,000 in damages to a Puerto Rico-based investor. The law firm has filed a FINRA arbitration case, 23-00251, on behalf of a disabled retiree who sought low-risk investments with stable returns and instead received an unsuitable speculative stock portfolio.
If you suffered investment losses with Nationwide Planning Associates or Jose Candelario, contact attorney Lawrence L. Klayman, Esq. immediately at 888-997-9956 or by email at lklayman@klaymantoskes.com to discuss recovery options. All consultations are free and confidential.
Despite their knowledge of the investor’s financial situation and needs, Candelario and Nationwide allegedly invested the customer’s funds using an aggressive strategy of purchasing speculative stocks, including a large concentration of funds invested in AMC Entertainment (NYSE: AMC), a speculative meme stock.
KlaymanToskes’ investigation found that Candelario allegedly advised the customer to not pay down his mortgage and instead invest in the speculative investments, which failed to provide income and safety of principal. Within 14 months, Candelario and Nationwide caused the investor significant realized losses. The same investments substantially underperformed the securities markets, including underperforming the S&P 500 Index Fund by over $500,000.
According to his BrokerCheck Report, Jose M. Candelario Padilla has 33 customer complaints, of which 4 are pending. Many of the complaints allege that the investors believed their investments were low risk and their principal would be returned at maturity. Others allege concentrated and leverage positions in unsuitable bonds and funds by their adviser Candelario.
KlaymanToskes’ recent filing alleges Candelario’s recommendations were unsuitable and violated Nationwide’s fiduciary duty to the investor. Additionally, Nationwide failed to explain the risk of the securities, including the speculative nature of the stocks and the strategy. The claim alleges the following securities violations:
Under FINRA suitability requirements (FINRA Rule 2111) brokers and brokerage firms have a duty to recommend suitable financial products and trading strategies based on their client’s financial interests.
Concentration or “failure to diversify” is a securities violation which occurs when a financial professional concentrates an investor’s assets in one particular investment or class of investments. This also applies when brokers fail to offer risk management and hedging strategies for a customer’s concentrated portfolio. Concentrated investments are not suitable, as investors may suffer extreme losses as a result of a particular investment failing. Securities concentration and failure to diversify and the failure to recommend risk management/hedging strategies may also be considered unsuitable investment advice, negligence, breach of fiduciary duty, or failure to supervise.
KlaymanToskes can help you determine if your investment loss is due to unsuitable investment advice or concentrated investments. Depending on your circumstances, you may be entitled to recover losses through FINRA arbitration.
Investors that suffered significant losses with Jose Candelario and/or Nationwide Planning Associates can reach securities attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss their recovery options.
Si no habla inglés, no hay problema. KlaymanToskes tiene personas que hablan español por su evaluación de su caso y una oficina en San Juan, Puerto Rico.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com