In June 2017, a former client won a FINRA arbitration against UBS Financial Services for $793,077.61 due to losses sustained from investments in Puerto Rico bonds. Erez Law is currently investigating UBS Financial Services financial advisors across the country who recommended high risk and unsuitable Puerto Rico bonds.
The former clients charged UBS Financial Services and UBS Financial Services of Puerto Rico with misrepresentation, negligence, breach of contract, breach of fiduciary duty, unsuitability and unauthorized trading. The causes of action related to claimants’ investments in tax-free government bonds issued by various Puerto Rico government agencies.
Puerto Rico suffers from long-term financial and economic deficiencies that rendered its credit increasingly more speculative. The deterioration of Puerto Rico’s financial condition culminated in its debt being downgraded to junk status or speculative (below investment grade). For the past several years, Puerto Rico has been struggling with compounding debt and economic decline. As a result, the value of Puerto Rico’s municipal tax-free bonds has considerably fallen. Since September 2013, when the steep decline in Puerto Rico bond values began, investors holding these bonds have suffered massive losses. In May 2017, Puerto Rico filed for bankruptcy protection from creditors in what is being described as the largest municipal bankruptcy filing in history.
At Erez Law, many of our clients come to us because of our specialization in Puerto Rico bonds. We have filed more than 200 FINRA arbitration cases against large brokerage firms, including UBS, Merrill Lynch, Santander Securities, Morgan Stanley, Oriental Financial Services, Popular Securities and others, holding these firms accountable for dishonest investment advisory practices, unsuitable recommendations, misrepresentation, and over-concentration in connection with Puerto Rico bonds and funds.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, UBS Financial Services may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against UBS Financial Services financial advisors who recommended unsuitable Puerto Rico bonds. If you were a client of UBS Financial Services or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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