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The Securities Arbitration Law Firm of KlaymanToskes announced today that it is investigating the sales practices and supervision by UBS Puerto Rico (“UBS PR”), a subsidiary of UBS Financial Services (NYSE: UBS), in connection with the sales of the following closed end funds:
Yesterday, the Securities & Exchange Commission (“SEC”) charged UBS PR and two of its executives with “making misleading statements to investors, concealing a liquidity crisis, and masking its control of the secondary market for 23 proprietary closed-end mutual funds.” The SEC also stated that in 2008, UBS PR promoted the closed-end funds’ “extraordinary ‘market returns’ and low risk and volatility, but failed to disclose that share prices and liquidity were increasingly dependant on UBS PR’s support of the [closed-end funds’] secondary market.” During 2008 alone, UBS PR’s non-exchange traded closed-end fund business produced $94.5 million in revenue for the firm.
Investors who sustained substantial losses in closed end funds in their UBS PR accounts can contact KlaymanToskes to explore their legal rights and options. This includes filing an individual securities arbitration claim with the Financial Industry Regulatory Authority (“FINRA”) against UBS PR. UBS PR is a member firm of FINRA which has jurisdiction over the broker-dealer in the arbitration process. While UBS PR paid $26.6 million to settle the SEC’s charges, which will be placed in a “fair fund” for injured investors, UBS PR has agreed that “in any Related Investor Action, it shall not argue that it is entitled to, nor shall it benefit by, offset or reduction of any award of compensatory damages by the amount of any part of [UBS’] payment of a civil penalty in this action.”
If you lost $100,000 or more in closed end funds purchased in your UBS PR accounts, please contact our firm.