Ramon “Cholo” Almonte (CRD #: 1014799), a broker associated with UBS Financial Services, has been in the spotlight recently following a flurry of investor disputes. His BrokerCheck record reveals a staggering 247 incidents dating back over his lengthy career.
Investor’s Troubling Allegations
Latest records show that on November 28, 2023, several investors alleged that Almonte recommended they invest in and hold onto Puerto Rico closed-end funds. Concerns were raised over the suitability of these recommendations, with investors stating that Almonte had misrepresented the risks associated with Puerto Rico investments. This recent round of allegations puts damages at approximately $250,000.
A Focus on Puerto Rico Investments
This isn’t the first time Almonte has been accused of unsuitable recommendations relating to Puerto Rico investments. Back in 2020, four separate dispute cases were lodged, alleging that Almonte had urged investors to put their funds into Puerto Rico municipal bonds or closed-end funds. These disputes were settled collectively for around $2.1 million dollars.
Puerto Rico faced a devastating debt crisis when major credit agencies downgraded bonds issued by the province in 2014. The crisis rippled across the globe and marked the onset of serious financial worry. Nevertheless, UBS advisors, including Almonte, reportedly continued advocating for investment in Puerto Rico closed-end funds, despite the clear risks this presented to their clients.
Understanding Closed-End Funds
The heart of this issue lies in the nature of closed-end funds. These operate by offering shares in an initial public offering and often involve trading in risky products. At face value, they might seem attractive, promising regular distributions and potential highs. However, they can also carry hefty fees that in many cases completely swallow up any potential returns. This feature, coupled with the inherent investment risk, makes them unsuitable for many investors, who may have been led astray by a mistaken belief in their potential profitability.
A Lengthy Track Record
Considering Almonte’s extensive career that spans over 42 years, such issues are undoubtedly a cause for concern. He has successfully passed several exams, including the Series 65 Uniform Investment Adviser Law Examination, Series 63 Uniform Securities Agent State Law Examination, SIE – Securities Industry Essentials Examination, and Series 7 General Securities Representative Examination. He is registered as a broker in 14 states, D.C., and Puerto Rico, and also operates as a registered investment adviser in Puerto Rico.
Over his career, he has been registered with three firms including UBS Financial Services (CRD #: 8174), UBS Financial Services Incorporated of Puerto Rico (CRD #: 13042), and Kidder, Peabody & Co. Incorporated (CRD #: 7613).
If you’ve worked with Ramon Almonte and have concerns about your investments, don’t hesitate to reach out to authorities or a trusted financial advisor. Contacting someone knowledgeable about securities fraud could help you recover your lost investment money and avoid repeating such investment mishaps in the future.