Securities Arbitration Lawyers BlogUBS Ordered to Pay $33.5M in Puerto Rico Bond Settlement
SEC and FINRA allegations include supervisory failures
Both the Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority have handed a UBS affiliate in Puerto Rico orders to pay a settlement in the amount of $33.5 million, according to Law360.com. The charges against the bank include failure to supervise a representative who allegedly manipulated investors in order to used borrowed money to buy up closed-ended bond funds. Silver Law Group currently represents hundreds of families in Puerto Rico for their losses in UBS bond funds.
The SEC has recently sued Jose G. Ramirez Jr., based on allegations that he tricked a handful of investors into using lines of credit to purchase up to $50 million worth of closed-end mutual funds. These funds plummeted when Puerto Rico’s bond market dropped in 2013.