SAN JUAN, Puerto Rico, Dec. 12, 2013 /PRNewswire-HISPANIC PR WIRE/ –The attorneys at the securities law firm SHEPHERD SMITH EDWARDS & KANTAS LLP, http://www.ubs-taxfree-puertorico.com/, have filed a claim against UBS Financial Services, Inc. (“UBS”) involving UBS broker Antonio Lopez (“Lopez”) and Puerto Rico bonds. The claim was filed on behalf of an 87 year old widow who was a client of UBS and Lopez for many years.
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According to the complaint, the client wanted to avoid undue risk in her investments while ensuring that they could be easily liquidated in case her small business needed additional capital. Lopez instead invested the client’s account almost entirely into proprietary UBS Puerto Rico Municipal bond funds which held mostly high risk bonds. Those funds were also highly leveraged, unbeknownst to the client, greatly increasing the risks the client was carrying. The client’s account was also completely undiversified, contrary to industry standards, further increasing the risks of the account.
The complaint continues that in 2013 the client approached Lopez about taking some of her money out of her account that she needed for a business opportunity. Lopez convinced the client to take out a loan against the account instead of liquidating because he said the client could always liquidate the securities in the account to cover the loan if the client needed to.
When Puerto Rico municipal bonds fell in value a few weeks later, suddenly the client was facing margin calls for the loan, yet was unable to sell the securities as Lopez promised when the client suddenly discovered that her entire account was illiquid. As a result, the client’s entire account has been virtually wiped out in a matter of weeks. The law firm Shepherd, Smith, Edwards & Kantas has filed a claim on behalf of the client seeking to recover the losses she suffered as a result of Lopez’s recommendations.
If you are or were a client of Antonio Lopez, or suffered losses in any other municipal bond investments made at the recommendation of your broker, contact the law firm of Shepherd, Smith, Edwards & Kantas LLP for a free, confidential evaluation of your account. We have a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. For more than two decades, our firm has represented thousands of investors nationwide to recover losses. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. More information can also be found on our blog at http://www.stockbrokerfraudblog.com/2013/10/puerto_rico_municipal_bonds.html.
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SOURCE Shepherd Smith Edwards & Kantas LLP