UBS Loses First Case for Mutual Fund Fraud

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.

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