UBS Puerto Rico Under Federal Investigation for Alleged Violations

Investigation focuses on one UBS financial adviser in particular

In a securities filing on July 28, 2015, the Swiss banking giant UBS AG reported that federal authorities are investigating one of its financial advisers and some of its customers for allegedly violating loan agreements and bank policies in Puerto Rico.

According to a Law360 release, the bank’s “second-quarter report included the news that it is responding to requests from the U.S. Securities and Exchange Commission and was aware of a U.S. Department of Justice criminal inquiry into the practice of unnamed customers and a UBS financial adviser of using loans backed by securities to invest in more securities, which is prohibited by bank policy and regulation.”

In addition to investigations by these two agencies, the Financial Industry Regulatory Authority (FINRA) is also investigating the matter for “supervision issues.”

These are not the only regulatory inquiries into UBS Puerto securities practices in recent years. Following the municipal bond market collapse in 2013, there have been numerous customer complaints, arbitration and claimed damages of over $1 billion, according to the bank report.

While the UBS report did not name the financial adviser at the center of the investigation, attorney Scott Silver told Law360 “there’s no question” that it is former UBS adviser Jose Ramirez. Silver, a securities attorney representing over 100 families in suits filed earlier this year against UBS Puerto Rico and its affiliates, is familiar with both Ramirez and the bank’s securities practices.

And even though Ramirez has over 61 disclosure events on his FINRA record concerning customer disputes – many of which include the same allegations as the federal investigation – Silver believes the investigations will go “far deeper” into UBS’s practices.

If you are an investor who may have been wronged by Ramirez, UBS Puerto Rico or another financial adviser or firm, you may have rights and a possible avenue to loss recovery through securities arbitration.

Silver Law Group is composed of skilled and experienced securities arbitration attorneys who are committed to helping you investigate your rights. When you work with us, you can expect a free consultation to further discuss your legal rights. Each case is handled on a contingent fee basis, meaning you will only have to pay legal fees if Silver Law Group is successful in prosecuting your case.