Kidder peabody paine webber9/4/2023 ![]() No prospectus covering these securities ever arrived and Cooperativa did not request copies. In the course of its 1986 purchases of the securities in question, Cooperativa received confirmation slips that stated that prospectuses were being forwarded under separate cover. Allegedly, Almonte disclosed neither the risky character of the bonds nor the termination provision. The securities were in fact backed by low-rated or unrated "junk" bonds bearing high interest rates and if the value of the bonds fell drastically, the trustees had power to terminate the trusts. ("Kidder").Īccording to Cooperativa, Almonte told it that the securities were a low-risk, safe and unspeculative investment, that the securities were not redeemable for another seven to ten years and that a steady stream of income at favorable interest rates could be expected. The securities were purchased at the recommendation of Ramon Almonte, Cooperativa's broker at Kidder, Peabody & Co. Between June and December 1986, Cooperativa purchased $3.5 million in Drexel Burnham Lambert "unit trusts," securities representing participations in several trusts whose assets were corporate bonds. Cooperativa is a small, one-branch savings and loan "cooperative" located in Aguada, Puerto Rico. The present appeal arises out of a federal securities lawsuit filed by Cooperativa de Ahorro y Credito Aguada ("Cooperativa"). Woods and Woods & Woods were on brief, for appellees Ramon Almonte and Mayleen Gratacos.īefore SELYA and BOUDIN, Circuit Judges, and YOUNG, * District Judge. ![]() Maria Bobonis-Zequeira, San Juan, PR, with whom Harry E. Mendez-Gomez, San Juan, PR, with whom Pietrantoni Mendez & Alvarez was on brief, for appellee Kidder, Peabody & Company. United States Court of Appeals,Įnrique Peral, Hato Rey, PR, with whom Roberto Boneta and Munoz Boneta Gonzalez Arbona Benitez & Peral were on brief, for appellant. Almonte, Mayleen Gratacos and the propertyĭefendants, Appellees. ![]() KIDDER, PEABODY & COMPANY, Paine Webber Incorporated, Ramon P 99,564 COOPERATIVA DE AHORRO Y CREDITO AGUADA, Plaintiff, Appellant, ![]()
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