Chicago, Illinois (PRWEB) December 16, 2013
The Stoltmann Law Offices files a FINRA arbitration against UBS Financial Services Inc. Puerto Rico (UBS-PR) for a customer who suffered alleged investment losses in including but not limited to AAA Portfolio Bond Fund, Fixed Income Fund IV, Puerto Rican GO bond and Puerto Rico fixed income fund. The case is FINRA Number 13-03908.
According to the Statement of Claim, UBS Puerto Rico sold the claimant and thousands of other investor’s highly speculative proprietary funds, which were not in their best interest. The Statement of Claim further alleges the money invested in UBS Puerto Rico Bond Funds was earmarked by the claimant for retirement. The claimant planned to use the UBS investments to buy a house in the United States in order to retire there.
According to the Puerto Rico Economic Activity Index (GBD-EAI) the island territory has posted an 11th year straight drop as of October 16, 2013.
As of December 2013 Fitch Ratings graded the Commonwealth’s sovereign debt one step above junk status with a negative outlook. According to S&P as of December 12, 2013 the Puerto Rico Municipal Bond Index has lost 18%, a substantial decline for a municipal index and a sharp contrast to other municipal bond indices.
According to Statement of Claim the claimant made several investments in UBS Puerto Rico municipal bond funds between the years 2005-2012. UBS Puerto Rico, through its agents, recommended the claimant invest a substantial allocation of their personal wealth in UBS Puerto Rico proprietary municipal bond funds. The claimant opened their account with UBS in July of 2005 and throughout the year transferred a significant amount of their personal savings into a UBS Puerto Rico account. This initial investment represented more than 50% of the claimant’s entire retirement portfolio.
According to Statement of Claim from 2005 to 2010 the claimant maintained a large allocation of assets in UBS-PR Bond Funds because of the advice of his financial advisors, and continuously reinvested the dividends distributed by the bond funds. In 2010, UBS-PR Agents convinced the claimant to invest more money in the Puerto Rico Fixed Income Fund IV and a Puerto Rican GO Bond. According to the Statement of Claim in March of 2012, UBS agents recommended an additional purchase in Puerto Rico Bond Funds. The claimant has currently invested 85% of their retirement savings in UBS Puerto Rico Bond Funds.
According to the Statement of Claim UBS Puerto Rico proprietary funds sold to the claimant were highly speculative in nature because of the continuously deteriorating economic and fiscal outlook for Puerto Rico. UBS-PR, as alleged by the claimant, misrepresented and/or omitted to disclose these material facts to the claimant.
On May 1, 2012 the Securities and Exchange Commission (SEC) issued a Cease-and-Desist Order in Administrative Proceeding Case No. 3-14863, against UBS Puerto Rico. In the Order, UBS Puerto Rico agreed to pay $26 million in disgorgement and fines to settle charges that it sold allegedly mispriced CEFs to investors, and that it knew but failed to disclose that the market was illiquid.
According attorney Andrew Stoltmann, “UBS Puerto Rico knowingly employed an ongoing scheme with the knowledge that the Claimant was relying on UBS Puerto Rico’s experience and trusted in UBS Puerto Rico’s good faith actions to make recommendations which were in the Claimant’s best interest. The Claimant reasonably and justifiably relied on the representations and omissions made by the UBS-PR and its Agents. As a result, of these misrepresentations and omissions made by UBS, the claimant suffered substantial financial losses.”
If you were a UBS Puerto Rico bond fund investor who has suffered losses, in UBS-PR Bond Funds and you would like to have your accounts reviewed, you may, without obligation or cost to you, email Andrew Stoltmann at Andrew@Stoltlaw.com or call the law firm at (312) 332-4200 and ask to speak to a securities attorney.
About Stoltmann Law Offices
The Stoltmann Law Offices exclusively represents investors from across the country and internationally in securities litigation and FINRA arbitration actions. Our Chicago based law firm focuses exclusively on FINRA securities arbitration claims and individual lawsuits against financial institutions, financial advisors, mutual fund firms and insurance companies.
Stoltmann Law Offices, P.C.
10 S. LaSalle St Suite 3500
Chicago, IL 60603
Andrew Stoltmann, 312-332-4200