MIAMI, April 30, 2020 (GLOBE NEWSWIRE) -- Lawyers with Shepherd Smith Edwards & Kantas (SSEK Law Firm) are investigating investor complaints involving the sale of Frontier Communication bonds by FMSBonds, also known as First Miami Securities. FMSBonds is a brokerage firm that sold Frontier Communication bonds to investors.
Frontier Communications, a telecommunications company, filed for bankruptcy protection last week, on April 21st, following an announcement the previous month that it would have to skip issuing coupon bond payments that were due on March 15th. These developments were bad news for bondholders, a number of whom are institutional investors, including Franklin Resources Inc. and Elliot Management Corp., who together hold almost 50% of Frontier Communications’ bonds. Another creditor group includes Millbank LLP, Houlihan Lokey, and GoldenTree Asset Management.
According to its FINRA BrokerCheck record, FMSBonds has 11 regulatory events listed as well as two customer disputes involving municipal bonds that were settled for over $218K and $455K, respectively. In 2017 , FINRA censured and fined FMSBonds $210K for allegedly affecting some 170 customer transactions in municipal security without disclosing to its customer(s):
- The amounts were under the issue’s minimum denomination
- The investment did not qualify for any exceptions
- There was a resale restriction involving the municipal security that could impact “the liquidity of the customer’s position.”
In addition, First Miami Securities also has been the subject of scrutiny over its sales of Puerto Rico bond funds to investors after the US territory’s bonds plunged in value several years ago. The firm’s former broker, Cecil Dimond, who was with the firm for almost three decades until last year, was named in three customer disputes over losses involving Puerto Rico municipal bonds. Investors alleged that the investment risks were misrepresented and that the bonds were sold to them even when they were unsuitable. Another stockbroker, Zachary Feinsilver, was also accused of Puerto Rico bond fraud by customers.
If you suffered losses as a Frontier Communications investor and your bonds were sold to you by FMSBonds or any other brokerage firm, please contact SSEK Law Firm today for a free, confidential evaluation of your account(s). SSEK Law Firm represents municipal bond investors throughout the United States.
Contact Info – 800-259-9010
Kirk Smith: ksmith@sseklaw.com
Sam Edwards: sedwards@sseklaw.com