According to public records and a FINRA enforcement action, Melendez borrowed more than $700,000 from multiple clients who were not in his immediate family—conduct that typically violates FINRA rules and ethical obligations. Investment advisers are generally prohibited from borrowing money from their customers, except in very limited circumstances.

FINRA Bars Manuel Melendez from the Securities Industry

Following a series of customer complaints, FINRA launched an investigation into Melendez’s conduct. As a result of this investigation, FINRA permanently barred him from working in the securities brokerage industry. This type of disciplinary action is reserved for serious violations and misconduct.

Background on Manuel Melendez

Melendez was affiliated with UBS Financial Services from May 2007 to May 2023, working out of their San Juan, Puerto Rico branch. After leaving UBS, he briefly worked for Herbert J. Sims & Co. from April to September 2023.

Can UBS Financial Services Be Held Liable?

Broker-dealers like UBS Financial Services are required by securities laws to reasonably supervise their registered representatives and follow written supervisory procedures. If UBS failed to detect or prevent Melendez’s improper borrowing from customers, the firm could be held liable for failing to supervise his actions—especially if clients sustained significant investment losses.

We Help Investors Nationwide, Including in Puerto Rico

At Israels & Neuman, PLC, we represent investors throughout the United States as well as Puerto Rico, who have been victims of broker misconduct, unsuitable investment recommendations, and fraud. If you were a client of Manuel Melendez and believe your financial advisor acted improperly, you may be entitled to recover losses through FINRA arbitration.

• View Manuel Melendez FINRA AWC
• View his BrokerCheck Report

Contact Us for a Free Case Evaluation

Call us today at (720) 599-3505 or (206) 795-5798 or fill out our contact form to learn more about your rights. We have experience representing Puerto Rico investors and are ready to help you recover what you deserve.