$26 MILLION FAIR FUND SETTLEMENT FOR INVESTORS OF CERTAIN UBS FINANCIAL SERVICES...

$26 MILLION FAIR FUND SETTLEMENT FOR INVESTORS OF CERTAIN UBS FINANCIAL SERVICES INC. OF PUERTO RICO FUNDS ESTABLISHED BY THE SECURITIES & EXCHANGE COMMISSION (“SEC”)



SHARE THIS ARTICLE

WASHINGTON, March 22, 2019 /PRNewswire-HISPANIC PR WIRE/ —

In the Matter of
UBS FINANCIAL SERVICES INC. OF PUERTO RICO
Admin. Proc. File No. 3-14863

TO:  INVESTORS IN ANY OF THE TWENTY-THREE (23) NON-EXCHANGE-TRADED, CLOSED-END FUNDS AFFILIATED WITH UBS FINANCIAL SERVICES INC. OF PUERTO RICO (“UBS PR”) WHO WERE HARMED BY UBS FINANCIAL SERVICES INC. OF PUERTO RICO’S OMISSIONS OR MISREPRESENTATIONS CONCERNING THE PRICING OF THEIR INVESTMENTS FROM MAY 15, 2008 THROUGH SEPTEMBER 30, 2009, AND/OR BY THEIR FAILURE TO EXECUTE MARKETABLE SELL ORDERS PLACED BY THE INVESTORS FROM MARCH 1, 2009 THROUGH SEPTEMBER 30, 2009. THE AFFECTED FUNDS ARE:

PR GNMA & U.S. Government Target Maturity Fund; 

PR Fixed Income Fund VI;

PR Mortgage Backed & U.S. Government Fund; 

PR Tax Free Target Maturity Fund I;

PR AAA Portfolio Target Maturity Fund; 

PR Tax Free Target Maturity Fund II;

PR AAA Portfolio Bond Fund I; 

Tax Free PR Target Maturity Fund;

PR AAA Portfolio Bond Fund II; 

Tax Free PR Fund I;

PR Investors Bond Fund; 

Tax Free PR Fund II;

PR Fixed Income Fund I; 

PR Investor’s Tax-Free Fund I;

PR Fixed Income Fund II; 

PR Investor’s Tax-Free Fund II;

PR Fixed Income Fund III; 

PR Investor’s Tax-Free Fund III;

PR Fixed Income Fund IV; 

PR Investor’s Tax-Free Fund IV;

PR Fixed Income Fund V; 

PR Investor’s Tax-Free Fund V;

PR Investor’s Tax-Free Fund VI.

IF YOU WERE AN INVESTOR IN ANY OF THE UBS FINANCIAL SERVICES INC. OF PUERTO RICO FUNDS LISTED ABOVE, YOU MAY BE ENTITLED TO A RECOVERY FROM THE UBS PR FAIR FUND.

Please read the complete Distribution Plan Notice of UBS PR Fair Fund to UBS Financial Services Inc. of Puerto Rico Investors (“Notice”) carefully as it contains important information regarding your rights.  This publication notice is only a brief summary of the Notice.

Overview of the Administrative Proceeding

On May 1, 2012, the Commission issued an order (“Order”)1 finding that from May 15, 2008 through September 30, 2009, UBS PR made misrepresentations and omissions of material facts to investors in Puerto Rico regarding the secondary market liquidity and pricing of the Funds (“Mispriced Transactions”). In addition, the Commission found that from March 1, 2009 through September 30, 2009, UBS PR effectively prevented investors from selling their Fund shares by failing to execute marketable sell orders placed by the investors (“Delayed Sales Transactions”). 

In accordance with the Order, UBS PR paid $26,609,739.94 to the Commission that consisted of $11,500,000.00 in disgorgement, $1,109,739.94 in prejudgment interest, and a $14,000,000.00 civil money penalty. The Order created the Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended. UBS PR paid the total $26,609,739.94 as ordered (the “Fair Fund”). The purpose and intent of the Distribution Plan is a fair and reasonable distribution of the Fair Fund to investors harmed by UBS PR’s conduct described in the Order.

The Distribution Plan has been approved by the Commission and the Commission retains jurisdiction over implementation of the Distribution Plan.

Who is Eligible

The purpose and intent of the Distribution Plan is a fair and reasonable distribution of the Fair Fund to investors harmed by UBS PR’s conduct. The Plan of Allocation, as more fully described in the Distribution Plan, contains two methodologies for calculating investors’ harm: one for Mispriced Transactions and one for Delayed Sale Transactions.

The first methodology, for Mispriced Transactions, is for investors who bought or sold shares of one or more of the Eligible Securities from May 15, 2008 through September 30, 2009, and whose investments were affected by the misrepresentations and omissions by UBS PR regarding pricing of their investment.

The second methodology, for Delayed Sale Transactions, applies to those investors who submitted marketable orders to sell between March 1, 2009 and September 30, 2009, and whose transactions were not executed by UBS PR, either in part or in full. For the Delayed Sale Transactions, investors are eligible to submit a claim as long as investors subsequently placed another order to sell shares and the shares were sold by the close of the markets on January 16, 2018 (the last date on which closing prices are available) and incurred harm as defined by the Plan of Allocation.

How to File a Claim

The Notice and Certification Form is being mailed to all identifiable and potentially-eligible claimants who are determined to have been harmed by the Mispriced Transactions or Delayed Sales Transactions in any of the UBS Financial Services Inc. of Puerto Rico Funds listed above between May 15, 2008 and September 30, 2009. If you did not receive the printed Notice and Certification Form, you may obtain copies by downloading them from the UBS PR Fair Fund’s Website at www.UBSPRFairFund.com. Additionally you may contact the Fund Administrator to request a copy by phone, email or mail:

UBS PR Fair Fund
c/o A.B. Data, Ltd.
P.O. Box 170500
Milwaukee, WI 53217
info@ubsprfairfund.com
866-217-4458

In order to file a claim and potentially share in the distribution of the UBS PR Fair Fund, you must submit a Certification Form postmarked no later than June 10, 2019.

1  See Order Instituting Administrative and Cease-and-Desist Proceedings pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order, Securities Act Rel. No. 9318 (May 1, 2012).

 

SOURCE U.S. Securities & Exchange Commission

$26 MILLION FAIR FUND SETTLEMENT FOR INVESTORS OF CERTAIN UBS FINANCIAL SERVICES INC. OF PUERTO RICO FUNDS ESTABLISHED BY THE SECURITIES & EXCHANGE COMMISSION (“SEC”)