UBS to Pay FINRA Claimants $3M in Puerto Rico Muni Bond Case

FINRA arbitration panel finds bank liable in alleged fraud claim

As Puerto Rico’s financial struggles continue, a FINRA arbitration panel awarded three claimants $3M in an alleged fraud claim against UBS Financial Services in early September.

According to Law360.com, the claimants alleged that the bank committed fraud relating to closed-end funds and muni bonds, and how the bank used those investments as collateral to borrow funds through lines of credit. Included in the complaint were allegations of breach of fiduciary duty, negligence and breach of contract against UBS.

In addition to the $2.9 million awarded to the Puerto Rico-based claimants, UBS also must pay $50,000 in costs and more than $479,000 in attorney’s fees, according to the ruling. Also noted in the filing was the fact that a separate group of claimants settled against UBS in late August.

While Puerto Rico continues to seek relief from its $73 billion public debt crisis, UBS shares the hot seat with a Banco Popular subsidiary in a class-action lawsuit. The allegations in this case accuse the banks of directing investors into what were believed to be safe closed-end mutual funds when, in fact, the funds were at risk due to Puerto Rico’s pending crisis.

If you have found yourself suffering financial loss as a direct result of the misconduct of UBS, Banco Popular or any other investment bank or firm, you may be entitled to loss recovery through securities arbitration.

Silver Law Group currently represent over one hundred families in securities arbitration claims against UBS alleging that the bond funds were misrepresented to the investors and that many investors were overconcentrated in the funds. Contact us today to discuss your case with an experienced securities arbitration attorney during a complimentary review.