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AUB investigates UBS Puerto Rico for losses in bond funds

Aidikoff, Uhl & Bakhtiari continues to investigate the sales practices of Wall Street firms in recommending bond funds to it’s clients.

In May 2012 the SEC issued a Cease-and-Desist Order against UBS Puerto Rico. Pursuant to the order, UBS Puerto Rico agreed to pay $26 million in disgorgement and settle charges that it sold allegedly mispriced closed end funds to investors. The alleged mispricing related to proprietary funds of UBS Puerto Rico which invested in Puerto Rican municipal bonds.

On October 2, 2013 the New York Times reported that UBS has undertaken an investigation over the sales of leveraged bond funds to its clients.   Some of the bond funds at issue may be:

 Tax-Free Puerto Rico Fund

Tax-Free Puerto Rico Fund II

Tax-Free Puerto Rico Target Maturity Fund

Puerto Rico AAA Portfolio Target Maturity Fund, Inc.

Puerto Rico AAA Portfolio Bond Fund

Puerto Rico AAA Portfolio Bond Fund II

Puerto Rico GNMA & U.S. Government Target Maturity Fund

Puerto Rico Mortgage-Backed & U.S. Government Securities Fund

Puerto Rico Fixed Income Fund

Puerto Rico Fixed Income Fund II

Puerto Rico Fixed Income Fund III

Puerto Rico Fixed Income Fund IV

Puerto Rico Fixed Income Fund V

Puerto Rico Fixed Income Fund VI

Puerto Rico Short Term Investment Fund

Multi-Select Securities Puerto Rico Fund

Puerto Rico Investors Tax-Free Fund

Puerto Rico Investors Tax-Free Fund II

Puerto Rico Investors Tax-Free Fund III

Puerto Rico Investors Tax-Free Fund IV

Puerto Rico Investors Tax-Free Fund V

Puerto Rico Investors Tax-Free Fund VI

Aidikoff, Uhl & Bakhtiari represents retail and institutional investors around the world in securities arbitration and litigation matters.  Attorneys for the firm have appeared before the Financial Industry Regulatory Authority (FINRA) and in numerous state and federal courts to resolve financial disputes between customers, banks, brokerage firms and other financial institutions.