FINRA Awards over $520,000 to UBS Clients in Puerto Rico Bond Losses

The Financial Industry Regulatory Authority Inc. (FINRA) awarded five UBS Financial Services’ clients more than $521,000 in compensatory damages in a case related to the clients' investments in Puerto Rican bonds and closed-end bond funds.
The clients are all residents of Puerto Rico.  They claimed that UBS violated the Puerto Rico Uniform Securities Act and engaged in securities fraud, common law fraud, and constructive fraud, in addition to breaching its fiduciary duty and negligently supervising its personnel.
Puerto Rican bonds were very popular with investors because they were tax-free, but hedge funds and debt buyers began buying up the debt as Puerto Rico's economy worsened and its credit rating dropped. Between March 2011 and October 2013, some of the funds lost 1/2 to nearly 2/3 of their value and have failed to recover.
UBS had 132 brokers in five branches in Puerto Rico. They were managing approximately $10 billion in 2013. Puerto Rico has tax policies which made it attractive for millionaires around the world. However, in 2012, UBS paid the SEC $26.6 million for allegedly misleading investors. There were allegedly several problems with the operations of USBPR, some of which were selling investments to unsophisticated investors without informing them of the risks, many of these investors lost their life savings. These products were closed-end funds which invested in Puerto Rican municipal bonds and were managed by UBS itself. Puerto Rico's economy was hit hard and the funds lost value quickly, resulting in investors losing millions.
Securities Lawyer, Lars Soreide of Soreide Law Group is quoted in several national publications regarding the lawsuits he has filed against UBS on behalf of his clients. See below:
https://www.securitieslawyer.com/securitieslawyerblog/?p=4905
https://www.securitieslawyer.com/securitieslawyerblog/?p=3907
https://www.securitieslawyer.com/ubspuertoricofundloss.html
Soreide Law Group has represented investors nationally and internationally regarding Puerto Rican bond losses. If you've experienced investment losses in Puerto Rico or in the United States, please call Soreide Law Group (888) 760-6552 for a free consultation on how to potentially recover your losses.