SAN JUAN, Puerto Rico, May 3, 2016 /PRNewswire-HISPANIC PR WIRE/ — Yesterday, Puerto Rico failed to make a payment due to bondholders of the Puerto Rico Government Development Bank. The Island was supposed to make a payment of over $400 million for Monday’s payment, representing the largest default to date made by the territory, as well as the first default of bonds by the Government Development Bank. Puerto Rico has been defaulting on payments since the beginning of August 2015. The continuation of these defaults is likely to increase the losses being faced by current investors.
Many financial advisors with UBS and other firms recommended their clients buy huge amounts of Puerto Rico bonds, claiming that these investments were low risk, fixed income options for Puerto Rican investors. In doing so, these advisors were overlooking the warning signs of Puerto Rico being unable to keep up with debt payments.
Many clients did not understand that Puerto Rico bonds, particularly in large amounts, carried substantial amounts of risk. Those clients who purchased UBS proprietary funds were taking even larger risks, as those funds were often highly leveraged and carried significantly higher risks than what their continental United States counterparts did.
If you are or were a customer of UBS Puerto Rico, Banco Popular, or another Puerto Rico brokerage firm who invested in Puerto Rico bonds, UBS Puerto Rico bond funds or similar securities, it is not too late to contact the law firm of Shepherd Smith Edwards & Kantas LLP for an evaluation of your account to determine if you might have a claim to attempt to recover some or all of your losses. All communications will be kept strictly confidential, and you will not be billed in any way for a consultation.
Shepherd Smith Edwards & Kantas LLP has 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 throughout the United States, Puerto Rico, and internationally to recover losses suffered through brokerage firms and banks. More information can also be found at www.ubs-taxfree-puertorico.com.
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