In 2013, UBS Wealth Management USA’s closed-end Puerto Rico bond funds collapsed as Puerto Rico approached the equivalent of municipal bankruptcy. Many clients alleged that their investment portfolios were over-concentrated in proprietary funds and that brokers exacerbated the issues by encouraging them to purchase more investments on margin. Many clients filed customer complaints against UBS aslleging fraud, misrepresentations, and the recommendation of unsuitable investments.
Jeff Sonn, founder of Sonn Law Group, stated, “UBS needs to get these cases behind it and close an embarrassing chapter in its history marked by misconduct and/or very poor decisions by certain senior officials.”
As of this week, the wirehouse’s parent company reported that it had resolved approximately $3.1 billion of the $3.4 billion worth of claims, or 91%. However, UBS did not report how many damage claims had been paid. According to the Securities Litigation and Consulting Group, an expert witness firm that works with investors, UBS was involved in more claims than any other bank that was operating in Puerto Rico at the time of its economic collapse.
The Sonn Law Group is currently investigating allegations surrounding UBS Wealth Management USA. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.