The Securities Arbitration Law Firms of Klayman & Toskes, P.A., www.sueubspuertorico.com,
and Carlo Law Offices continue to investigate UBS and its subsidiary,
UBS Financial Services of Puerto Rico (“UBS”) (NYSE: UBS) for sales
practice violations on behalf of investors in UBS Puerto Rico Bond
Funds. Securities-industry regulators, Security Exchange Commission
(SEC) and Financial Industry Regulatory Authority (FINRA), yesterday
announced a $34 million settlement with UBS for sales practice
violations related to UBS Puerto Rico Bond Funds and UBS affiliated bank
loans.
According to the SEC
Administrative Proceedings, UBS Financial Services of Puerto Rico
(“UBSPR”), “agreed to settle the SEC’s charges by paying $15 million in
disgorgement, interest, and penalties, which will be placed into a fund
for harmed investors.” The SEC filing also disclosed that UBS agreed to
pay fines related to the failure to supervise its financial advisors’
recommended use of loans for concentrated investments in its proprietary
closed-end Puerto Rico Bond Funds. According to the FINRA
Acceptance Waiver and Consent Order (AWC), UBSPR agreed to settle
with FINRA for $18.5 million, “paying a $7.5 million fine and interest
on up to $11 million in restitution to more than 150 investors in the
closed-end funds.” FINRA cited that during the relevant period, the sale
of UBS Puerto Rico Bonds Funds and UBS Bank Loans, “accounted for $152
million in revenue for UBSPR, nearly 35% of its total revenue.”
In response to UBS’ fines and sanctions, securities attorney, Steven D,
Toskes adds, “These regulatory actions will help investors understand
that UBS’ fraudulent misconduct related to UBS Puerto Rico Bond Funds
and UBS bank loans have caused their losses.” Mr. Toskes continued,
“Regulators charged UBS with sales practice violations including
misrepresentations about risk, concentration
in Puerto Rico Bond Funds and the unsuitable use of UBS
bank loans.” Our current
investigations have discovered significant information and insights
into UBSPR and its financial advisors’ sales practices which resulted in
our clients’ financial damages.”
The securities arbitration law firms of Klayman & Toskes, P.A. and Carlo
Law Offices are dedicated to the rights of Puerto Rico investors. We are
experienced, qualified and nationally recognized securities litigation
attorneys currently investigating UBSPR for FINRA
sales practice violations related to concentrated investments in UBS
Puerto Rico Bond Funds and UBS Bank Loans. Puerto Rico investors who
suffered losses as a result of UBS sales practice violations may be able
recover their losses in a FINRA arbitration claim. If you have knowledge
or experience related to the sales practices of UBSPR and its financial,
contact Steven D. Toskes, Esq. at 888-997-9956
Destination: http://sueubspuertorico.com/the-securities-arbitration-law-firms-of-klayman-toskes-p-a-and-carlo-law-offices-continue-to-investigate-ubs-financial-services-of-puerto-rico-after-settlement-with-sec-and-finra-regulators/
View source version on businesswire.com: http://www.businesswire.com/news/home/20150930006872/en/
Copyright Business Wire 2015