UBS Loses A Second Puerto Rico Fund Case

UBS lost its second case in less than a week for a buried client in the firm’s proprietary funds. A Financial Industry Regulatory Authority (FINRA) arbitration panel in San Juan, Puerto Rico, found two UBS units liable to an investor, Juan Burgos. Burgos brought a case against the firm for the almost $800,000 in investment losses he suffered in his bond fund portfolio, alleging that UBS mishandled his portfolio, and invested his life savings in risky Puerto Rican closed-end bond funds. The funds have been under scrutiny because of their high concentrations in debt of the island’s government and other related entities. The funds lost nearly half to two thirds of their value over the last two years, because of the concern over Puerto Rico’s high debt and continuously unstable economy. The arbitration panel ruled in favor of Burgos, forcing UBS to buy back his investment portfolio to the tune of $1 million. There are currently hundreds of claims filed against UBS for their sale of the Puerto Rican closed-end bond funds. Another FINRA arbitration panel on May 14th ordered UBS AG to pay an investor $200,000 for her losses in the funds.

Stoltmann Law Offices has filed dozens of claims to date on behalf of investors who lost money in the risky Puerto Rican closed-end bond funds. If you invested in these funds, you can sue UBS in the FINRA arbitration forum to recover some of your losses. Please call us for a free, no obligation consultation with one of our securities attorneys at 312-332-4200. We are based in Chicago.

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