SAN JUAN, Puerto Rico, July 30, 2014 (GLOBE NEWSWIRE) — The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.perdidasenbonospr.com; www.sueubspuertorico.com, together with Carlo Law Offices, P.S.C. located in Puerto Rico, announced today that they filed a claim against UBS Financial Services Incorporated of Puerto Rico and UBS Financial Services, Inc. (NYSE:UBS) (collectively “UBS”), on behalf of two retirees. The claim seeks to recover $1.5 million in damages sustained as a result of investing in UBS Puerto Rico Closed End Bond Funds (“UBS PR CEBFs”), including Puerto Rico Investors Tax Free Fund III, Puerto Rico AAA Portfolio Bond Fund and Puerto Rico Investors Bond Fund.
According to the Claim, the Claimants, who are in their 70s, are unsophisticated investors who invested their hard earned life savings with UBS to devise a portfolio that would provide for their retirement years. After retiring, the Claimants looked to UBS to devise a retirement portfolio to provide them with income and financial security. UBS recommended that they take out a loan through UBS Bank USA and use their securities account at UBS as collateral. Claimants followed this recommendation and the recommendation by UBS to purchase its proprietary UBS PR CEBFs that were concentrated in Puerto Rico Government Bonds (“PRGBs”), as well as individual PRGBs. With the securities account serving as collateral, the Claimants wanted a low risk portfolio that would provide income. However, unbeknownst to Claimants, their accounts with UBS incorporated a high degree of risk. They were exposed to concentration, leverage, and lack of liquidity. Had this information and the true nature of the risks of these investments been revealed to and known by Claimants, or properly disclosed, they absolutely would not have invested their savings in these products.
The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of UBS in connection with the sale of UBS PR CEBFs to their customers. Current and former customers of UBS, or other full-service brokerage firms in Puerto Rico, who purchased PR CEBFs, and have information relating to the manner in which the firm represented these products, are encouraged to contact Steven D. Toskes of Klayman & Toskes, or Lcdo. Osvaldo Carlo of Carlo Law Offices, at (787) 919-7325, or visit us on the web at www.perdidasenbonospr.com or www.sueubspuertorico.com.