UBS Puerto Rico Fund Losses 2016-10-18T16:51:06+00:00

UBS (and Similar Brokerage Firms) Puerto Rico Fund Losses Arbitration and Investigation
Also: Funds With More Than 5% Weighting In PR Bonds

Soreide Law Group is currently representing investors who were sold by their stock broker Puerto Rico Funds

Soreide Law Group is investigating UBS Puerto Rico Investment Losses and has filed a FINRA arbitration against UBS on behalf of an elderly investor who purchased the UBS Puerto Rico Fixed Income Fund I. If you have experienced UBS Puerto Rico Fund losses and own any of these investments please contact Soreide Law Group today for a free consultation regarding possible investment loss recovery.

BREAKING NEWS: Several NON-UBS Bond Funds Also are Heavily Weighted With Puerto Rico Bonds (see below)

In May 2012, UBS Financial Services Inc. of Puerto Rico settled with the SEC for $26.6 million over claims that it had been making misrepresentations and omissions of material facts to numerous retail customers in Puerto Rico regarding the secondary market liquidity and pricing of UBS PR-affiliated, non-exchange-traded closed-end funds. The settlement related to the alleged misrepresentations made to investors regarding the following Funds on the right side of the page:

UBS Puerto Rico Fund Losses?  PR Funds Were Also Sold By Other Brokerage Firms.

It was alleged by the SEC that during 2008 and 2009, UBS PR, made misrepresentations and omissions of material facts to numerous retail customers in Puerto Rico regarding the secondary market liquidity and pricing of UBS PR-affiliated, non-exchange-traded closed-end funds. For example, UBS PR claimed CEF prices were based on market forces such as supply and demand. However, UBS PR did not disclose that CEF prices were set solely at the discretion of the trading desk. Moreover, although UBS had certain disclosures about liquidity in prospectuses (not supplied to secondary market customers) and on its website, it did not adequately disclose, among other things, that as the dominant CEF broker-dealer, UBS PR controlled the secondary market. In reality, any secondary market sales investors wanted to make depended largely on UBS PR’s ability to solicit additional customers or willingness to purchase shares into its inventory. As UBS PR, the CEO and the HCM promoted CEF sales throughout 2008, they knew investor demand was significantly declining relative to supply. For much of 2008, UBS PR purchased millions of dollars of CEF shares into its own inventory while promoting the appearance of a liquid market with stable prices, without disclosing UBS PR’s actions were propping up prices and liquidity.

During this period, numerous UBS PR customers were also attempting to sell their holdings but UBS PR’s actions effectively prevented certain customers from selling their CEF shares. Between March and September 2009, UBS PR sold about $35 million, or 75%, of its inventory to investors. At the same time, UBS PR increased its efforts to solicit sales of CEFs while continuing to misrepresent how it was setting secondary market prices and the liquidity of the market. UBS PR also did not disclose its withdrawal of market support. By September 2009, when UBS PR completed its CEF inventory reduction, the market price of certain funds had declined by 10-15%.

If you purchased any of the aforementioned funds from UBS Financial Services Incorporated of Puerto Rico or through UBS’ USA based offices please call (888) 760-6552 for a free consultation to learn how you may be able to recover some or all of your investment losses through the filing of a FINRA arbitration. Soreide Law Group is representing investors nationally and internationally against UBS.

UBS Financial Services of Puerto Rico Inc.;

UBS Trust Company of Puerto Rico;

Puerto Rico Fixed Income Fund I, Inc. (Cusip # 744907106)
Puerto Rico Fixed Income Fund II, Inc. (Cusip # 744908104)
Puerto Rico Fixed Income Fund III, Inc. (Cusip #744909102)
Puerto Rico Fixed Income Fund IV, Inc. (Cusip #74528A105)
Puerto Rico Fixed Income Fund V, Inc. (Cusip #744909102)
Puerto Rico Fixed Income Fund VI, Inc. (Cusip #744909102)
Puerto Rico Investors Tax-Free Fund, Inc.; (Cusip #87675M102)
Puerto Rico Investors Tax-Free Fund, Inc. III;
Puerto Rico AAA Portfolio Bond Fund, Inc.; (Cusip #74514P108)
Puerto Rico AAA Portfolio Bond Fund II, Inc., (Cusip #74514T100)
Puerto Rico AAA Portfolio Target Maturity Fund, Inc.; (Cusip #74514M105)
Tax Free Puerto Rico Target Maturity Fund Inc. (Cusip #87675W100)
Puerto Rico Mortgage-Backed & Government Securities Fund, Inc. (Cusip #74528E107)
Puerto Rico GNMA & US Government, Inc. (Cusip #74528E107)

 

Funds Heavily Weighted in Puerto Rico Bonds:
Oppenheimer Rochester Ohio Muni Fund: OROHX
Rochester Fund Municipals Fund: RMUNX
Oppenheimer Rochester National Munis: ORNAX
Oppenheimer ROchester AMT-Free NY Muni: OPNYX
Franklin Double Tax Free Income Fund: FPRTX
Oppenheimer Rochester VA Municipal Fund: ORVAX
Oppenheimer Rochester NC Municipal Fund: OPNCX
Oppenheimer Rochester MD Municipal Fund: ORMDX
Oppenheimer Rochester AZ Municipal Fund: ORVAX
Oppenheimer Rochester MA Municipal Fund: ORMAX
Oppenheimer Pennsylvania Municipal Fund: OPATX
Oppenheimer Rochester Michigan Muni Fund: ORMIX
Forward Credit Analysis Long/Short Fd: FLSIX
Nuveen VA Premium Inc Muni: NPV

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