Zamanksy LLC Announces the Filing of a FINRA Arbitration against UBS Financial Services of Puerto Rico for a Family of Investors with Alleged $6.5 Million of Losses

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Zamanksy LLC announces the filing of a FINRA arbitration against UBS Financial Services of Puerto Rico for a family of investors with alleged $6.5 million of losses. The case involves the Puerto Rico Fixed Income Fund and other closed-end funds which invest in Puerto Rico Municipal Bonds.

Zamansky LLC announces it has filed a FINRA arbitration against UBS Financial Services Inc. of Puerto Rico and UBS Financial Services Inc. on behalf of a family of brokerage customers over approximately $6.5 million in alleged losses suffered in proprietary closed-end bond funds issued by UBS PR, including the Puerto Rico Fixed Income Fund. The case is FINRA TN 1301503.

The Statement of Claim in the arbitration alleges that for the last five years UBS Puerto Rico has been engaged in a scheme of pushing its "safe" and "secure" proprietary Puerto Rican closed-end bond funds on conservative investors and retirees for the purpose of reaping huge underwriting and management fees. The Statement of Claim further alleges that, over the last two years, Puerto Rican debt and credit has deteriorated substantially, so that the proprietary closed-end Puerto Rican bond funds experienced a massive increase in risk making them unsafe and unsuitable for most investors.

The Statement of Claim alleges that Puerto Rico Fixed Income Fund and other Puerto Rico municipal bond funds became too risky and unsuitable for the Claimants, a family of investors who wanted to protect and preserve their wealth. The Statement of Claim alleges that the Claimants suffered losses of $6.5 million from a collapse in the value of the bond funds by 60% or more due to deteriorations in Puerto Rico credit. The Statement of Claim also alleges that UBS Puerto Rico had serious conflicts of interest which influenced the unsuitable investment advice that it gave claimant, and that it breached its fiduciary duty to investors under Puerto Rico law.

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. The SEC also alleged that UBS Puerto Rico pushed its bond funds on customers through aggressive sales practices.

Stock fraud attorney Jacob Zamansky has described what is happening in Puerto Rico as the "Hurricane Katrina of financial crises." Any UBS Puerto Rico bond fund customer in this situation should consult a professional to discuss his or her legal rights, Zamansky states.

What Investors Can Do

If you were a UBS Puerto Rico bond fund investor who allegedly suffered a loss from a proprietary bond fund, or you would like to have your accounts reviewed, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.

About Zamansky LLC

Zamansky LLC is a leading investment fraud law firm specializing in securities arbitration and securities class actions. Our stock fraud attorneys represent both individual and institutional investors. Our stockbroker fraud practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.


Zamansky LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414

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Jacob Zamansky
Zamansky & Associates LLC
212 742-1414
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