FINRA Arbitration Panel Awards $1.88 Million to Investors in Puerto Rico Bond Case
On March 28th, 2018, a FINRA arbitration panel based in San Juan, Puerto Rico found UBS Financial Services and UBS Financial Services of Puerto Rico legally liable for $1.88 million in losses sustained by two investors and one retirement fund.
The investment products at issue in this case were Puerto Rico closed-end and Puerto Rico municipal bonds. Notably, these financial products have sustained tremendous losses in the last few years. As a result, many different investors have brought claims against UBS Financial Services, which was the largest seller of Puerto Rico municipal bonds and other government-backed debt products.
Understanding the FINRA Arbitration Panel’s Decision
Under FINRA Rules, only a limited amount of information about an arbitration decision is released to the public. We know that the investors in this case brought a claim in relation to losses sustained in Puerto Rico closed-end and Puerto Rico municipal bonds. We also know that the investors raised the following causes of action against the brokerage firm:
- Breach of fiduciary duty;
- Broker negligence;
- Financial advisor fraud;
- Negligent supervision;
- Violation of Section 10(b) of the Securities Exchange Act; and
- Violation of Rule 10b-5 of the Securities and Exchange Commission.
Upon considering all of the relevant evidence presented in the case, including financial documents, testimony, and pleadings, the FINRA arbitration panel came down in favor of the investors, ruling that they are entitled to a total of $1.88 million in compensatory damages.
Bad Puerto Rico Municipal Bonds Were Recommended to Investors in Florida
UBS Financial Services and other large brokerage firms sold Puerto Rican bonds to many investors in South Florida. These financial products were often targeted at older investors, who were seeking relatively safe and conservative holdings for their retirement savings. Unfortunately, Puerto Rico municipal bonds were far riskier than many of these investors were led to believe. In recent years, these financial products have seen tremendous losses, including some defaults. As a result, much of Puerto Rico’s municipal debt has been downgraded to ‘non investment’ grade or ‘junk’ status.
Our Miami junk bonds attorneys have extensive experience handling cases related to Puerto Rico bonds and other junk bond products. If you sustained substantial investment losses in these products, and you believe that you were misled by your broker or brokerage firm, you may be entitled to financial compensation. Brokers have a duty to sell investment products that are truly suitable for the financial needs of their customers. Unfortunately, in far too many cases, brokers fail to live up to this professional duty.
Contact Our Miami FINRA Arbitration Lawyers Today
At Carlson & Associates, P.A, our skilled investment fraud attorneys are committed to holding bad brokers accountable. If you lost a substantial amount of money investing in Puerto Rico municipal bonds, we can help. For a free, no strings attached review of your claim, please call our Miami office today at 1-(305)-372-9700 or contact us through our website.
Resource:
finra.org/sites/default/files/aao_documents/17-00592.pdf
