Wednesday, September 18, 2019

UBS Ordered to Pay $1.45M to Puerto Rico Investor in Bond Case

By on February 19, 2016

SAN JUAN – According to a Thursday night ruling by a Financial Industry Regulatory Authority (FINRA) arbitration panel in San Juan, UBS Financial Services and UBS Financial Services of Puerto Rico must pay at least $1.45 million in compensatory damages, interest, attorneys’ fees and expert costs over UBS Puerto Rico’s sale of UBS Puerto Rico municipal bond closed-end funds.

Christel Marie Bengoa López’s lawsuit claimed violations of the FINRA Code of Conduct and Uniform Securities Act of Puerto Rico, fraud, breach of contract and negligence, among others. UBS denied the allegations.

“Although the arbitrators awarded less than the full damages the claimant requested, UBS is disappointed with the decision to award any damages, with which we respectfully disagree,” a UBS spokesman said in a statement obtained by Reuters.

According to the claim, Bengoa was advised to buy more securities using a UBS-issued loan.

Some of the Puerto Rico funds sold by UBS lost much of their value from 2011 to 2013.

In September, UBS was fined nearly $34 million to settle Securities and Exchange Commission and Finra charges.

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