Update on UBS Fraud In Puerto Rico: Suing UBS Puerto Rico

The press have recently started covering the financial mess in Puerto Rico that hundreds of UBS clients are facing.  The New York Times did a story yesterday and exposed many of the abuses occurring from UBS clients and UBS related proprietary investment products see link below

http://dealbook.nytimes.com/2013/10/02/ubs-brokers-in-puerto-rico-create-headache-for-the-bank/?_r=0 

UBS Puerto Rico is the island’s market leader in closed-end funds, operating more than a dozen. Its Tax-Free Puerto Rico Fund Inc. had a net asset value of $5.242 on Sept. 18, down from $6.73 on Sept. 4 and $9.55 on Jan. 31. Santander Securities and Popular Securities also run closed-end funds with Puerto Rico bond holdings that suffered losses. Many Puerto Ricans invest in the island’s debt through closed-end mutual funds, which in several cases held more than 70 percent of assets in Puerto Rico bonds and employed leverage that magnified this month’s losses.

Many UBS clients who purchased the firms Puerto Rico bonds are trying to figure out what to do about recovering investment losses,  In these sorts of cases, investors often contact the brokerage firm directly.  Usually, the brokerage firm like UBS is very accommodating…at first.  The firm asks the client to simply “put their complaint in writing.”  It is not uncommon for the brokerage firm to claim verbally it will compensate the client but it first needs to see documents related to the investments and to see a complaint letter from the client.

We usually recommend clients don’t do this.Contacting and dealing directly with the brokerage firm is usually a big mistake.Given the sheer number of claims that will likely be filed against UBS, we believe it is unlikely the firm will simply start compensating victims.Regardless of the conduct, it has been our experience that 97% of the time, the brokerage firm rejects the client’s written request for damages.

Such excuses are provided by the brokerage firm like “the client knew the investment was risky or employed leverage.” It is very rare for a brokerage firm to compensate a client without a lawyer.The firms will often drag the “investigation” of the client’s complaint for a long period of time, hoping the client trusts the brokerage firm’s representation that no conduct took place.Sometimes the delays by the brokerage firm are intentional in order to get the statute of limitations period to expire.

Often, clients do irreparable damage to their case when they speak to the brokerage firm’s lawyers or compliance department. 

 We encourage victims who purchased the UBS related funds below to contact an attorney and discuss legal options before contacting the brokerage firm.  To learn more, please contact our law firm at 312.332.4200 or visit www.InvestmentFraud.PRO

 Closed-End funds 

Tax-Free Puerto Rico Fund, Inc.

Tax-Free Puerto Rico Fund II, Inc.

Tax-Free Puerto Rico Target Maturity Fund, Inc.

Puerto Rico AAA Portfolio Target Maturity Fund, Inc.

Puerto Rico AAA Portfolio Bond Fund, Inc.

Puerto Rico AAA Portfolio Bond Fund II, Inc.

Puerto Rico GNMA & U.S. Government Target  Maturity Fund, Inc.

Puerto Rico Mortgage-Backed & U.S. Government  Securities Fund, Inc.

Puerto Rico Fixed Income Fund, Inc.

Puerto Rico Fixed Income Fund II, Inc.

Puerto Rico Fixed Income Fund III, Inc.

Puerto Rico Fixed Income Fund IV, Inc.

Puerto Rico Fixed Income Fund V, InC

Puerto Rico Fixed Income Fund VI,

 

Open-end Funds

 

-Puerto Rico Short Term Investment Fund, Inc.

-Multi-Select Securities Puerto Rico Fund -UBS IRA Select Growth & Income Puerto Rico Fund

Puerto Rico Investors Family of Funds (Co-managed  with Popular Asset Management)

-Puerto Rico Investors Tax-Free Fund, Inc.

-Puerto Rico Investors Tax-Free Fund Inc. II

-Puerto Rico Investors Tax-Free Fund III, Inc.

-Puerto Rico Investors Tax-Free Fund IV, Inc.

-Puerto Rico Investors Tax-Free Fund V, Inc.

-Puerto Rico Investors Tax-Free Fund VI, Inc.

-Puerto Rico Tax-Free Target Maturity Fund, Inc.

-Puerto Rico Tax-Free Target Maturity Fund II, Inc.

-Puerto Rico Investors Bond Fund I

     

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