UBS Pays $1.68 Million to Settle Some Puerto Rico Bonds Loss Claims
From the Desk of Jim Eccleston at Eccleston Law Offices:
UBS has agreed to compensate $1.681 million to 34 Puerto Rico-based investors for their losses in investments in their municipal bond closed ended funds.
Those closed-end funds are tied to Puerto Rico’s municipal bonds, which carry significant tax advantages over other investments and have been popular with investors. But the island’s fiscal problems and its slow economic growth have caused the bonds to lose value.
Further, UBS allegedly permitted or even recommended that senior aged clients (with a conservative risk tolerance and with a significant portion of their liquid assets tied to closed-end funds) use personal loans—so called non-purpose loans—to purchase the bond funds. And six UBS brokers made the recommendations to direct their clients to improperly borrow money in order to buy the funds.
Within six months UBS is to conduct a review of customer accounts of seniors, who have low net worth and a conservative risk profile to determine if any additional action or restitution is required.
The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.
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Tags: UBS, Puerto Rico, Eccleston Law