UBS Puerto Rican Bonds Drive a Surge in Arbitration Claims

Posted on February 25th, 2014 at 9:15 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

UBS Financial Services and UBS Financial Services of Puerto Rico face a surge in arbitration claims filed by investors and related to Puerto Rican bonds, which now have been downgraded to speculative.

UBS recommended investments into UBS proprietary closed-end bond funds, managed or co-managed by UBS, holding Puerto Rican bonds. Moreover, UBS frequently recommended the use of the UBS Puerto Rico bond funds as collateral for UBS bank loans.

The market for Puerto Rico debt became increasingly volatile last year with the deterioration on the island's economy. Even though the government enacted pension reforms and other measures, it still was futile to prevent the commonwealth's investment ratings from downgrading.

It is alleged that UBS knew about a significant supply and demand imbalance and discussed the weak secondary market internally. Further, the investors claim that UBS made misleading statements to investors and increased its own holdings to keep prices up and maintain the appearance of a stable market.

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.

Related Attorneys: James J. Eccleston

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

August 12, 2022
SEC Charges J.P. Morgan, UBS, and TradeStation for Deficiencies Pertaining to the Prevention of Customer Identify Theft

The Securities and Exchange Commission (SEC) has charged J.P. Morgan Securities, UBS Financial Services, and TradeStation Securities over deficiencies in their programs designed to prevent client identify theft, which violates the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.

August 11, 2022
FINRA Suspends Former Schwab Advisor for Failing to Disclose Felony Charges

The Financial Industry Regulatory Authority (FINRA) has suspended a former Charles Schwab advisor who allegedly failed to disclose multiple felony charges.

August 10, 2022
UBS Wealth Group’s Legal Costs Skyrocket in Q2

UBS Wealth’s litigation expenses have substantially spiked in the second quarter as the firm has faced a host of investor complaints and regulatory probes into UBS’ volatile Yield Enhancement Strategy (YES).