SAN JUAN, Puerto Rico, June 7, 2014 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.perdidasenbonospr.com; www.sueubspuertorico.com, together with Carlo Law Offices, P.S.C. located in Puerto Rico, announced today that they filed a claim against UBS Financial Services Incorporated of Puerto Rico and UBS Financial Services, Inc. (NYSE:UBS) (collectively "UBS"), on behalf of a non-profit organization based in Puerto Rico. The claim seeks to recover $2 million in damages sustained as a result of investing in UBS Puerto Rico Closed End Bond Funds ("UBS PR CEBFs"): Puerto Rico Fixed Income Fund and Puerto Rico Fixed Income Fund IV.
According to the Claim, the non-profit organization that was created with the purpose of protecting certain employees, and improving their work conditions as well as their social and financial interests, opened an account with UBS to utilize the firm's expertise to recommend a safe, low risk investment that the Claimant could invest its savings into for the benefit of its members. The Claimant could not risk subjecting the savings designed to protect its members to high risk investments. Knowing this objective, UBS solicited the Claimant to invest in its proprietary PR CEBFs. UBS promoted and sold the UBS PR CEBFs with the stated investment objectives of current income with preservation of capital. However, these funds were too risky to maintain these objectives. UBS failed to disclose to the Claimant the danger associated with the UBS PR CEBFs in that they are leveraged, lack diversification, lacked liquidity, and trade on a secondary market that is controlled and operated by UBS. Moreover, the Claimant received no benefit from the tax free funds as they are an exempt, non-profit organization. Trusting UBS, the Claimant invested over $2 million into two of the UBS PR CEBFs. By trusting UBS and its financial advisor, the Claimant's savings has been severely affected and is still compromised.
The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of UBS in connection with the sale of UBS PR CEBFs to their customers. Current and former customers of UBS, or other full-service brokerage firms in Puerto Rico, who purchased UBS PR CEBFs, and have information relating to the manner in which the firm represented these products, are encouraged to contact Steven D. Toskes of Klayman & Toskes, or Lcdo. Osvaldo Carlo of Carlo Law Offices, at (787) 919-7325, or visit us on the web at www.perdidasenbonospr.com or www.sueubspuertorico.com.