UBS loses $793,000 in Puerto Rico bond arbitration case

Claimants asserted firm was negligent and breached its fiduciary duty

Jun 28, 2017 @ 2:34 pm

By InvestmentNews

A Finra all-public arbitration panel has awarded claimants $793,077.61 in a case involving the sale of Puerto Rico municipal bonds by UBS.

The claimants — Madeleine Carrero, individually and as trustee of Fideicomiso Ulises Barros and Ulises Barros Carrero — charged UBS Financial Services and UBS Financial Services of Puerto Rico with a slew of violations. Among others, they included misrepresentation, negligence, breach of contract, breach of fiduciary duty, unsuitability and unauthorized trading.

The causes of action related to claimants' investments in tax-free government bonds issued by various Puerto Rico government agencies.

The award notice was published by the Financial Industry Regulatory Authority's Office of Dispute Resolution.


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