UBS Financial Services Inc. And UBS Financial Services Of Puerto Rico Ordered...

UBS Financial Services Inc. And UBS Financial Services Of Puerto Rico Ordered To Pay Investor Approximately $19 Million For Losses Involving UBS’s Proprietary Puerto Rican Bond Funds



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SAN JUAN, Puerto Rico, Oct. 31, 2018 /PRNewswire-HISPANIC PR WIRE/ — UBS Financial Services Inc. and UBS Financial Services of Puerto Rico (collectively “UBS”) were recently ordered to pay approximately $19,000,000 for losses Puerto Rico investors incurred in UBS’s Closed-End Puerto Rico bond funds (the “Funds”) and Puerto Rico bonds.  These investors also complained about the use of leverage in connection with these investments.

UBS has been ordered to pay tens of millions of dollars in various arbitration claims to date, including awards of approximately $9 million, $15 million, $18 million, and now $19 million.  The UBS bond funds at issue in many of these cases were not traded on any exchanges, involved high amounts of leverage, and were heavily concentrated into a single geographic area, which exposed the investors to high amounts of risk.  In some instances, investors have alleged their brokers advised them to borrow additional money from UBS to invest in these securities, which would tremendously increase the risks involved.  In many instances, the clients have alleged that they were told this was a safe strategy that would not put their money at substantial risk.

If you are or were a client of UBS, 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.

Contact Info: 800-259-9010

713-580-8914 to speak to Spanish fluent staff 

Sam Edwards sedwards@sseklaw.com 

Kirk Smith ksmith@sseklaw.com  

Luis Acevedo lacevedo@sseklaw.com

SOURCE Shepherd Smith Edwards & Kantas LLP

UBS Financial Services Inc. And UBS Financial Services Of Puerto Rico Ordered To Pay Investor Approximately $19 Million For Losses Involving UBS’s Proprietary Puerto Rican Bond Funds