SEC Probes Bankers From Barclays, Morgan Stanley on Puerto Rico Bond SalesSEC Probes Bankers From Barclays, Morgan Stanley on Puerto Rico Bond Sales
Bankers being charged for with alleged violations of fair dealing, securities and municipal bond rules.
June 29, 2017
(Recasts with sourcing from regulator)
June 28 (Reuters) - The U.S. Securities and ExchangeCommission may take action against bankers from Barclays Plcand Morgan Stanley for their roles in PuertoRico bond sales, according to filings with the FinancialIndustry Regulatory Authority (FINRA).
According to records filed with FINRA, the SEC's staff hasrecommended the agency file an enforcement action againstBarclays' Luis Alfaro and James Henn for alleged violation offair dealing rules for their roles in the island's debt sales.
The SEC staff suggested that Henn, who has worked atBarclays since 2008, and Alfaro, who worked at First Bank PuertoRico Securities before moving to Barclays in 2013, allegedlyviolated securities and municipal bond rules on fraud, deceptionand misrepresentation during the sale of Puerto Rico bonds.
The SEC staff also suggested sanctioning Morgan Stanley'sCharles Visconsi, the co-head of public finance, and his formercolleague Jorge Irizarry, in connection with disclosures PuertoRico made in documents circulated to investors, according toFINRA records.
Barclays, Morgan Stanley and the SEC were not immediatelyavailable for comment. Reuters could not obtain contactinformation for Alfaro, Henn and Visconsi.
Bloomberg earlier reported on the allegations on thebankers.
Puerto Rico's financial oversight board said on Wednesdaythat it was still in debt restructuring talks with creditors ofthe island's power utility, PREPA, a day after rejecting aproposed deal to restructure $9 billion of the utility's bonds.
(Reporting by Parikshit Mishra in Bengaluru and Lisa Lambert inWashington; Additional reporting by Kanishka Singh in Bengaluru;Editing by Andrew Hay and Leslie Adler)
