UBS to Pay More Than $470,000 In Damages for Puerto Rico Bond Losses
According to the Financial Industry Regulatory Authority (FINRA) last week, UBS Group AG’s wealth management business for the Americas must pay more than $470,000 to three investors who claimed damages because their account were overconcentrated in Puerto Rico bonds that plunged in value. Obdulio Melendez Ramos, Ramon Velez Garcia and Carlos L. Merced filed claims in October 2014, alleging fraud and negligent supervision and were seeking $570,243 in damages. UBS awarded them just slightly less than what they asked for. The bank recently released its fourth-quarter earnings results and those showed that since August 2013, declines in Puerto Rico’s municipal bonds and related funds managed by the firm have led to damages for claims totaling $1.5 billion. $284 million of those claims so far have been resolved through settlements or arbitration.
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