(PRWEB) February 15, 2014
Soreide Law Group PLLC, a leading securities law firm, filed a FINRA arbitration claim (case #14-00438) against UBS Financial Services of Puerto Rico for allegedly selling a 70 year old Mayaguez resident large concentrations of UBS’ Tax Free Puerto Rico Fund and UBS’ Puerto Rico Fixed Income Fund V.
Securities Lawyer, Lars Soreide says that, “With the recent downgrade of Puerto Rico’s credit rating and the UBS Puerto Rico bond funds now at or near junk bond status, the situation will only get worse for many UBS Puerto Rico Bond Investors.”
It is alleged in the lawsuits that from 2008 on, such as recently filed FINRA case #14-00438, UBS Financial Services made misleading statements to their clients and masked its control of the secondary market for 23 proprietary closed-end mutual funds which they sold. UBS knew or should have known about a significant supply and demand imbalance in their funds and the weak secondary market for their Fund. In the recently filed lawsuit, many of the funds sold to their customers were purchased in 2008 or later when UBS should have been fully aware of the high risk nature of these securities. It is alleged that UBS Puerto Rico chose to mislead investors and failed to disclose that it controlled the secondary market, where investors sought to sell their shares in the Fund. UBS Puerto Rico significantly increased its inventory holdings in the closed-end funds in order to prop up market prices, bolster liquidity, and promote the appearance of a stable market.
According to court documents, in May 2012, UBS Financial Services Inc. of Puerto Rico settled with the SEC for $26.6 million (File No. 3-14863) over claims that it had been making misrepresentations and omissions of material facts to numerous retail customers in Puerto Rico regarding the secondary market liquidity and pricing of UBS PR-affiliated, non-exchange-traded closed-end funds. The announced settlement with the SEC was the first time that investors were put notice of the fraud. The settlement included several of the funds sold to the Soreide Law Group’s 70 year old client. Soreide Law Group is being retained by clients both in Puerto Rico and in the United States to pursue their bond loss claims for them through the FINRA forum.
If you or a loved one knows of a UBS Puerto Rico Bond loss victim call securities lawyers, Soreide Law Group, at (888) 760-6552 or visit us on the web at http://www.SecuritiesLawyer.com. There is no fee if there is no recovery and Soreide Law Group advances all costs.