Press release from Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes Commences Investigation Into the Sales Practices of UBS Financial Services of Puerto Rico In Connection With the Sale of Puerto Rico Closed-End Bond Funds
Thursday, October 03, 2013
The Securities Arbitration Law Firm of Klayman & Toskes Commences Investigation Into the Sales Practices of UBS Financial Services of Puerto Rico In Connection With the Sale of Puerto Rico Closed-End Bond Funds18:06 EDT Thursday, October 03, 2013
NEW YORK (Business Wire) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (www.nasd-law.com) announced today that it is investigating the sales practices of UBS Financial Services of Puerto Rico (“UBS”) (NYSE:UBS) in connection with the sale of Puerto Rico closed-end bond funds, as well as the losses sustained by investors in these funds. These funds include the following:
- Puerto Rico AAA Portfolio Bond Funds I and II
- Puerto Rico AAA Portfolio Target Maturity Fund
- Puerto Rico Investors Tax-Free Funds I -- VI
- Puerto Rico GNMA & U.S. Govt. Target Maturity Fund
- Puerto Rico Investors Bond Fund I
- Puerto Rico Mortgage Backed & US Govt. Fund
- Puerto Rico Fixed Income Funds I through VI
- Tax-Free Puerto Rico Target Maturity Fund
- Tax-Free Puerto Rico Funds I and II
According to The New York Times, some UBS customers were encouraged to buy securities on lines of credit in violation of the brokerage firm's policy. Additionally, many clients took out margin loans to buy into these funds. With many of the bond funds already highly leveraged themselves, in some cases as high as 53%, losses can be exasperated when the value of the funds decline. Now, many UBS clients have been forced to liquidate hundreds of millions of dollars in holdings in these funds after incurring margin calls. As a result of the losses, securities arbitration claims have already begun to be filed with FIRNA's arbitration department to recover losses on behalf of Puerto Rico closed-end bond fund investors.
Klayman & Toskes has substantial experience in the field of securities arbitration and litigation, representing investors all over the world against full-service brokerage firms. If you have information relating to this investigation, please contact Steven D. Toskes or Jahan K. Manasseh of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.
Klayman & Toskes, P.A.
Steven D. Toskes or Jahan K. Manasseh 888-997-9956