Finra panel awards five UBS clients $521,000 in damages over Puerto Rican bonds

Puerto Rican residents charged the firm with fraud and breach of fiduciary duty

Feb 26, 2018 @ 5:34 pm

By InvestmentNews

An all-public arbitration panel of the Financial Industry Regulatory Authority Inc. has awarded five clients of UBS Financial Services more than $521,000 in compensatory damages in a case related to the clients' investments in Puerto Rican bonds and closed-end bond funds.

The clients, all residents of Puerto Rico, claimed UBS violated the Puerto Rico Uniform Securities Act and engaged in securities fraud, common law fraud and constructive fraud, in addition to breaching its fiduciary duty and negligently supervising its personnel.

The clients originally asked for compensatory damages in the amount of $840,000 plus punitive damages, interest, costs, expert witness fees, Finra fees and attorneys' fees. All were denied by the panel.

Compensatory damages in the following amounts were awarded to the following clients: Hector E. Rodriguez-Lopez, $87,411; Myrna L. Rivera Marengo, $19,221; Angel M. Cruz Colon and Carmen Ortiz Nevarez, $181,989, as well as an additional $5,056 to Ms. Ortiz Nevarez; William Rodriguez Reyes and Betzaida Hernandez, $223,814, plus $3,575 to Ms. Hernandez.

(More: Hurricanes that ravaged Puerto Rico also wreck its bonds)

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Geoffrey Brown: What's top of mind at NAPFA?

NAPFA is looking ahead at the rest of 2018 and has a broad agenda that includes improving diversity in the advice industry. What's next? Geoffrey Brown offers his insights.

Latest news & opinion

10 fastest-growing IBDs

These independent broker-dealers saw the biggest percentage gains in their revenue in 2017.

The unique nature of working with celebrity clients

Athletes and entertainers are just like everyone else — aside from complex tax issues, a lack of financial savvy and a need for prenups

Top 10 IBDs ranked by revenue

These independent broker dealers generated the most revenues in 2017.

8 podcasts advisers listen to when they aren't working

Listening to podcasts for the fun of it.

UBS continues to cut loans to recruits, while increasing compensation to brokers

The wirehouse reduced recruitment loans 20% and increased bonus loans 68% in the first quarter.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print