Update for Victims of Ramiro L. Colon III, Jose Ramirez and UBS Puerto Rican Bond Funds
The Securities and Exchange Commission (SEC) charged Ramiro L. Colon III and UBS Puerto Rico for failing to supervise a former broker who had customers invest in Puerto Rico affiliated mutual funds using borrowed money from an affiliated bank last week. Colon was the former branch manager of UBS. The SEC also filed a complaint in federal court against Jose Ramirez Jr., (also known as Chave Ramirez, Jose G. Ramirez Jr., Jose Jr. Ramirez and Jose G. Ramirez Arone) a former registered representative in UBS’s Guaynabo branch office. They allege that he increased his compensation by $2.8 million by having certain customers use proceeds from lines of credit with UBS Bank USA to purchase additional shares in the closed-end mutual funds. Allegedly, Ramirez instructed the bank’s customers to transfer money from their credit lines to an outside bank account before moving them to UBS to purchase the closed-end Puerto Rican bond funds. The bond funds then decreased in value significantly. UBS agreed to settle the SEC charges by paying $15 million in disgorgement, interest and penalties. Colon agreed to pay $25,000 and was suspended from the industry for one year.
According to the SEC complaint, Ramirez lied to customers about the safety of the funds and about the risk of investing in them with borrowed money. He also allegedly lied to his branch manager about the transactions. He was terminated from UBS in January 2014. UBS was found to have not reasonably supervised Ramirez, after becoming aware of his wrongdoings on at least two separate occasions. UBS was also found to have no system in place to monitor the transactions that were taking place outside of the bank. Colon was found to have allegedly not taken proper actions or precautions when notified of Ramirez’s activities. He also allegedly did not properly investigate the allegations presented to him regarding Ramirez.
According to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report, Jose Ramirez Jr. was registered with Painewebber Incorporated in Weehawken, New Jersey from June 1986 until August 1988, Prudential Securities Incorporated in New York, New York from February 1990 until February 1997, UBS Financial Services in San Juan, Puerto Rico from March 1997 until February 2014 and UBS Financial Services in Guaynabo, Puerto Rico from March 1997 until February 2014. He has 65 customer disputes against him, 57 of which are currently pending. He is not licensed within the industry and FINRA permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.
Stoltmann Law Offices is a securities law firm that is currently representing dozens of investors in their claims against Jose Ramirez Jr. and UBS. UBS can be held liable for investment losses because the bank failed to supervise its managers and its representatives. If you lost money in UBS’s Puerto Rican closed-end bond funds, please call us immediately at 312-332-4200. Time is of the essence in these sorts of cases. The call is free with no obligation. We take cases on a contingency fee basis only, which means we do not make money unless you recover money. We sue UBS in the FINRA arbitration forum.
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