The Silver Law Group Announces FINRA Arbitration Claim Against UBS Financial Services of Puerto Rico on Behalf of Retired Couple in Puerto Rico
SAN JUAN, Puerto Rico, Dec. 19, 2013 (GLOBE NEWSWIRE) – The Silver Law Group announces the recent filing of a securities arbitration claim with Financial Regulatory Industry Authority (FINRA) against UBS Financial Services and UBS Financial Services of Puerto Rico (“UBS”) on behalf of retired couple in Puerto Rico for damages of $1.7 million. According to the securities arbitration claim, UBS solicited the retired couple to invest the vast majority of their retirement savings into proprietary closed-end bond funds, managed or co-managed by UBS, and municipal bonds.
The arbitration claim alleges, “UBS further made an institutional decision to encourage many investors, including Claimants, to take loans from UBS (via Repo accounts and/or credit lines) instead of withdrawing money from the accounts creating an unnecessary and unexplained risk.” Scott L. Silver, Managing Partner of the Silver Law Group asserts that “Our clients were advised to collateralize their investment accounts for UBS loans to be used to meet their liquidity needs.” Mr. Silver explains further, “Our clients were advised that the interest from the UBS loans were lower than the investment income creating a positive economic gain, without any explanation of the risks of the strategy.” In addition to investments in Puerto Rico municipal bonds, UBS solicited investments in the following closed-end bond funds:
- UBS Puerto Rico Fixed Income Funds
- UBS Puerto Rico Investors Tax Free Funds
- UBS Tax Free Puerto Rico Funds
- UBS Puerto Rico Investors Bond Fund
Compliance with FINRA rules and regulations requires adherence to the securities industry standards of care designed to protect the investing public. UBS is required to provide, and investors can reasonably rely upon UBS financial advisors for competent, suitable investment advice for securities held in their brokerage accounts. UBS is required to supervise the activities in customer accounts and losses may be attributed to the failure to supervise their financial advisors. Losses from recommendations that are the result of negligence and/or unsuitable investment advice can represent causes of legal action available to investors against UBS in a securities arbitration claim filed with FINRA.
The Silver Law Group is committed to advocate for investor rights throughout the United States and Puerto Rico. Puerto Rican Investors who are interested in learning what action could have prevented the losses are encouraged to contact our law firm. Our attorneys have significant experience representing investors in FINRA arbitration claims. If you have questions about your legal rights, or have been the victim of investment fraud, please contact us Toll Free at (800) 975-4345 for a free consultation.
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