SAN JUAN, Puerto Rico, Sept. 4, 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"). The claim seeks to recover $300,000 in damages sustained as a result of being over-concentrated UBS Puerto Rico Closed End Bond Funds ("UBS PR CEBFs").
According to the Claim, the Claimant, an unsophisticated investor, placed his confidence and trust in UBS and allowed its financial advisors to invest his savings in what he thought was a conservative investment strategy. However, UBS implemented a high risk strategy by purchasing for Claimant the firm's proprietary UBS PR CEBFs and recommending that the Claimant take out a loan with UBS Bank USA using the UBS PR CEBFs as collateral against the loan. Unbeknownst to Claimant, he had a high risk portfolio that was concentrated in UBS' bond funds that were invested in Puerto Rico bonds and were leveraged and illiquid. The claim alleges that UBS fraudulently concealed the risks associated with the UBS PR CEBFs, while Claimant relied on their financial expertise. The Claimant could not afford to take on this level of risk as he was dependent on his investments for income and his only other source of income is his social security. When the Puerto Rico bond market collapsed, the Claimant was wiped out and lost his life savings.
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, and the recommendation to take out loans through UBS Bank USA. Current and former customers of UBS who purchased UBS PR CEBFs and took out loans through UBS Bank USA, and have information relating to the manner in which the firm represented this strategy, 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.