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Maddox, Hargett & Caruso P.C. currently is investigating potential claims on behalf of investors against UBS Puerto Rico for alleged fraud involving a group of closed-end bond funds.
According to several news reports, including one by the New York Times, UBS Puerto Rico clients “had been piled into highly leveraged bond funds run by UBS” and were “encouraged by its brokers to borrow even more money to invest in those funds. In some cases, money was lent improperly, exacerbating current losses.”
UBS is one of only a small number of banks in Puerto Rico that has a large team of brokers doing business on the island. As reported in the New York Times story, UBS claims to manage money for half of the island’s millionaires – roughly $10 billion. Much of this money has been packaged into UBS’ own proprietary closed-end funds. Following a recent downturn in Puerto Rico’s economy, several of these funds have reportedly lost more half their value, despite being marketed to clients as “safe” and “low-risk” investments.
Some of the UBS Puerto Rico funds in which investors have seen their holdings dramatically fall in value include the Puerto Rico Fixed Income Fund I, Tax Free Puerto Rico Fund II, Puerto Rico AAA Portfolio Based Funds I and II, the Puerto Rico AAA Portfolio Target Maturity Fund, Puerto Rico Investor’s Tax-Free Funds I-VI, Puerto Rico GNMA & U.S. Gov. Target Maturity Fund, Puerto Rico Investors Bond Fund I, Puerto Rico Mortgage Backed & US Govt. Fund, Puerto Rico Fixed Income Funds I-VI, Tax-Free Puerto Rico Target Maturity Fund, and Tax-Free Puerto Rico Funds I and II.
If you have suffered substantial financial losses in these or other UBS Puerto Rico funds, contact us to tell your story.