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

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  • September 30, 2015

San Juan, Puerto Rico (BUSINESSWIRE) – September 30, 2015 – 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

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