On Thursday, securities arbitrators ordered UBS AG to pay an investor $1.45 million for losses incurred by Puerto Rico closed-end bond funds, according to a ruling. A Financial Industry Regulatory Authority (FINRA) arbitration panel found two UBS units liable in the case, which alleged securities fraud, misrepresentation and other misdeeds. Many of the funds lost half to two-thirds of their value between March 2011 and October 2013. They have not recovered since as the island remains under massive debts. UBS has had hundreds of claims filed against them, with a collective $1.5 billion at stake. Of those, the firm has resolved $284 million in claims through settlements or the full arbitration process. UBS in September of last year, agreed to pay almost $34 million to settle charges from the U.S. Securities and Exchange Commission (SEC) and FINRA. Both regulatory bodies claimed that UBS failed to supervise sales of the funds. Please call us today if you have claims against UBS for Puerto Rican bond fund sales. We may be able to sue the firm in the FINRA arbitration process.
The Financial Industry Regulatory Authority (FINRA) recently announced that more fines need to be paid out in the Puerto Rican bond fund fraud. Allegedly, some financial institutions failed to properly supervise their employees trading bonds in Puerto Rico and downplayed the risk associated with the bonds. According to the Wall Street Journal, FINRA fined a unit of Spain’s Banco Santander $2 million for its part in the municipal bond sales, and the unit has agreed to pay $4.3 million in restitution to customers who lost money. This comes after the U.S. Securities and Exchange Commission (SEC) announced that FINRA reached an agreement with UBS Financial Services Inc. of Puerto Rico (UBSPR) to pay $34 million for failing to supervise a broker whose customers invested in mutual funds with money that was borrowed from a UBSPR-affiliated bank. In June, FINRA ordered UBS to pay $1 million to a Puerto Rican retiree, whose broker recommended he invest in the funds, even though they were not suitable for him.
If you invested in Puerto Rican bond funds, please call us at 312-332-4200. We are securities attorneys who represent dozens of investors who invested in the Puerto Rican bond funds and lost money. The call is free with no obligation. We are securities attorneys who help investors recover their money losses by suing UBS in the FINRA arbitration forum. Please call as soon as possible because time is of the essence with these types of cases. We take cases on a contingency fee basis only, so we only get paid if you recover money.
Stoltmann Law Offices is investigating Antonio A. Lopez Villafane, a current broker with UBS in Puerto Rico. He is accused of selling UBS proprietary closed-end Puerto Rican bond funds, which were heavily invested in Puerto Rico’s municipal bonds. These bonds have suffered devastating losses over the past year, and Stoltmann Law Offices is currently representing dozens of clients who have lost money in the bond funds. UBS can be held responsible for losses because they had a duty to reasonably supervise their brokers who sold the funds. Brokers also have a duty to recommend suitable recommendations to their clients, based on their age, net worth, investment strategy and savvy, and if they do not, is a violation of securities rules and regulations.
Villafane is registered with UBS Financial Services in San Juan, Puerto Rico and has been since February 1991. He has 33 customer disputes against him, 25 of which are currently pending, according to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report. Please call our Chicago-based law firm at 312-332-4200 as soon as possible, because time is of the essence. The call is free with no obligation. We take cases on a contingency fee basis only, so we only get paid if you recover money.
UBS Financial Services was fined $750,000 by the Financial Industry Regulatory Authority (FINRA) over the misclassification of municipal bond interest payments. FINRA claimed that UBS paid out $1,165,000 in tax-free interest to 4,371 clients who held municipal bonds from July 2009 through December 2013. But UBS was actually short on the bonds, so the interest came from them directly and was taxable as ordinary income. The bank “agreed in principal with the IRS to make a payment to relieve its customers of the burden of filing amended tax returns and paying additional federal income tax.” If you invested money with UBS, you may be able to recover some of that money by suing them in the FINRA arbitration process. Please call our securities law offices based in Chicago, Illinois at 312-332-4200. The call is free with no obligation.
According to reports, many UBS registered stockbrokers have been laid off, due to the fallout related to UBS’s Puerto Rican closed-end bond funds. Seven brokers who were laid off by UBS filed a $25 million arbitration claim with the Financial Industry Regulatory Authority (FINRA) on Friday. The registered representatives claim that UBS misled its brokers and customers about the UBS Puerto Rican closed-end bond funds. They also claim that UBS allegedly made material misstatements and omissions about the funds. The brokers then claimed they were threatened, lied to and pressured by the firm to sell the Puerto Rican products, or face termination. If you lost money in Puerto Rican closed-end bond funds, you may be able to recover those losses in the FINRA arbitration forum. Please call our Chicago-based securities law firm to find out how you can bring claims against UBS. The call is free with no obligation. We represent dozens of clients who suffered losses with UBS’ Puerto Rican closed-end bond funds.
UBS Securities entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) in which the firm was fined $100,000 and censured for Trade Reporting and Compliance Engine (TRACE) reporting violations. UBS, as managing underwriter, allegedly failed to report new issue offerings in TRACE-eligible Corporate Debt Securities to FINRA according to the time frames set forth by FINRA. It also allegedly failed to report to TRACE the correct time of execution for 80 transactions during a quarterly review period. We bring claims against UBS for transgressions such as these. If you would like to bring a claim against UBS, please call us at 312-332-4200 to speak to an attorney for free.
UBS AG was ordered to pay $200,000 to an investor on Wednesday for losses in its Puerto Rico closed-end bond funds. This is the first case to go to hearing against UBS. The Financial Industry Regulatory Authority (FINRA) arbitration panel found two UBS units liable in the case, alleging securities fraud, misrepresentation, unsuitable investment recommendations and other misdeeds. Hundreds of claims have been filed to date, altogether seeking more than $900 million in damages. Between 2011 and 2013, the funds lost nearly half to two-thirds of their value, because of fears regarding Puerto Rico’s debt size. The result is good news for burned investors as it shows FINRA arbitrators “get” and are receptive to arguments about the fraud engaged in by UBS reps. We are securities attorneys who represent dozens of investors in the Puerto Rico bond fund cases. If you invested money with UBS Puerto Rico bond funds, you may be able to recover some of your money by calling us at 312-332-4200. The call is free with no obligation, and time is of the essence.
Stoltmann Law Offices is investigating two Puerto Rico based firms, Oriental Financial Services Corp and Popular Securities, Inc., for allegedly making unfair markups on trades and for violating trade reporting requirements. The Financial Industry Regulatory Authority (FINRA) fined the firms a total of $370,000 for their mismanagement of Puerto Rico funds. FINRA found that between July 1, 2011 and June 30, 2013, both firms solicited concentrated purchases of Puerto Rico securities designed to provide Puerto Ricans with a triple tax benefit. After Puerto Rico’s general obligation bonds were downgraded, neither firm maintained or enforced effective procedures instructing supervisors to review the security concentrations. If you invested money in Puerto Rico based firms, Oriental Financial Services Corp or Popular Securities, Inc. we may be able to help you recover your investment losses. We are securities attorneys based in Chicago who specialize in recovering investment losses. 312-332-4200.
Puerto Rico’s Electric Power Authority (Prepa) is expected to default on one in four of its municipal bond funds that hold some exposure to the debt of the utility. Prepa provides electricity to nearly 1.5 million households and businesses on the island and is a self-funded utility. There is approximately $1.7 billion in Prepa bonds held by mutual funds. They account for about $33 billion in assets. The Prepa securities are also the subject of ongoing FINRA arbitration claims against brokers at multiple firms, including UBS AG affiliate. Investors were sold Prepa bonds that subsequently lost value. If you invested in Prepa invested municipal bond funds, you may be able to recover your losses. Please call us at 312-332-4200 to speak to an attorney so we can help you recover your losses.
Manuel Martinez-Umpierre, a client of UBS Financial Services, Inc., of Puerto Rico, asked a local court on Friday to order the release of confidential documents that Puerto Rico’s Office of the Commission of Financial Institutions used in its settlement with UBS on October 9th. The settlement required UBS to pay $1.7 million in restitution to 34 residents, most with low net worth. It also required an additional $3.5 million to be paid out to an investor education fund. Umpierre is claiming to have lost more than $400,000 in closed-end bond fund investments, which were sold by a UBS AG unit. The documents could contain pertinent information that may aid in the FINRA arbitration cases against UBS. So far, over 500 arbitration claims have been filed. If you invested money in the Puerto Rican closed-end bond funds, please call our Chicago-based securities law firm at 312-332-4200 to speak to an attorney to find out how we may be able to help you recover your losses.