UBS Lawsuit Investigation
If you invested in UBS Puerto Rico municipal bonds, you may have legal rights to recoup the lost value in your investments. Contact our financial fraud attorneys toll-free at 888-981-7140 to find out how our investigation affects you.
12/21/2017 – After an investigation by CNBC that found “UBS was not forthcoming about the risks associated with its proprietary bond funds sold to residents on the island [Puerto Rico]”, a senior member of the House Financial Services Committee has called for a congressional hearing on the matter.
“The reported claims of deception, mismanagement, and coercion highlighted in the CNBC article, if true, are egregious, unethical, and potentially illegal,” said Rep. Nydia Velázquez in a letter to Rep, Jeb Hensarling (R-Texas), the chairman of the committee. “All Americans deserve honesty, integrity, and trust when it comes to investing in our capital markets — they are the fundamental truths that our free-enterprise system is based upon.”
“A culture of deception and deceit erodes that trust and could lead investors to lose faith in our institutions and markets,” she wrote.
See the CNBC investigation, here:
UBS Puerto Rico Bond Funds Attorneys
Our attorneys represent people with investments in Puerto Rico Municipal Bond Funds. If you have lost money due to the drop in Puerto Rico tax-exempt bond prices, we may be able to help you recover your losses.
Between October 1, 2013, and December 31, 2016, over 1,850 arbitration cases were filed against the following brokerage houses:
- UBS Financial Services Inc.
- Santander Securities LLC
- Popular Securities LLC
- Merrill Lynch, Pierce, Fenner & Smith
- Oriental Financial Services Corp.
Over 740 of these cases have settled for a combined value of $162.5 million. An additional 1,083 cases are still pending.
Recover Your Losses
Investors in the following funds may be eligible to file a claim:
- Puerto Rico Investors Tax-Free Fund, Inc., II, III, IV, V, VI Puerto
- Rico Investors Bond Fund I Puerto Rico Tax-Free Target Maturity Fund,
- Inc., II Tax-Free Puerto Rico Fund, Inc., II Tax-Free Puerto Rico
- Target Maturity Fund, Inc.
- Puerto Rico AAA Portfolio Target Maturity Fund, Inc.
- Puerto Rico AAA Portfolio Bond Fund, Inc., II 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., II, III, IV, V, VI Economic
Crisis Leads to Devaluation of Bonds
Many investors in these funds lost a significant amount of money when the Puerto Rican government defaulted on their debt due to the economy’s continued downward slide, which resulted in the devaluation of the status of the municipal bonds.
The arbitration cases that have been filed on behalf of investors are held in FINRA arbitration. FINRA, the Financial Industry Regulatory Authority, is a self-regulatory organization operated by American brokerage firms that are the primary arbitration forum for the resolution of securities disputes.