It was announced that the Securities and Exchange Commission (SEC) issued a Wells notice to UBS regarding secondary market trading of closed-end funds sold in Puerto Rico in 2008 and 2009.
USB sold $2.9 billion in bonds in 2008. UBS was a former financial adviser to Puerto Rico's Employees Retirement System that provides pensions for government workers. USB collected $27 million in fees and its co-underwriters.
A manager at UBS bought $1.5 billion of the securities and invested them into 20 mutual funds. The bonds represented about 17 percent of the funds' $8.9 billion in assets at the time.
It was reported that the Puerto Rican Employees fund had assets of $1.9 billion and liabilities of $18.9 billion as of June 2009, leaving it 90 percent underfunded.
Mutual fund shareholders sued UBS in February 2010, saying the firm breached its fiduciary duty to investors by reaping fees on the bond offering while charging fund fees including a 4.75 percent commission.
Many sources felt that the sale of closed-end funds sold by UBS had insufficient disclosures to their clients and conflicts of interest.
Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained a stock/securities loss through UBS, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
RUDY ANGUIANO is currently registered both as a broker and as an investment advisor with ALEXANDER CAPITAL LP and ALEXANDER CAPITAL WEALTH MANAGEMENT LLC of Red Bank, New Jersey since 1/9/2026. Anguiano was previously listed with LPL Financial of Brea, California from 04/04/2022 - 12/18/2025. In addition, he was listed with AMERIPRISE FINANCIAL SERVICES LLC […]
MARIO L MARTINEZ formerly of MERRILL LYNCH, PIERCE, FENNER & SMITH INC of Ft. Lauderdale, FL was permanently barred by FINRA from acting as a broker or otherwise associating with a broker/dealer firm on 5/1/2025. Martinez was registered as a broker with MERRILL LYNCH, PIERCE, FENNER & SMITH INC of Ft. Lauderdale, FL from 10/23/2015 […]
Investors have reportedly disputed the sales practices of securities broker Ronald Albert Gelok Jr. (also known as Ron Gelok) [CRD: 1403352, Naples, Florida], given the public information on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Gelok worked for Ronald Gelok Associates LLC from November 17, 2017, to the present, and AAG Capital Inc. from July 8, […]
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