In an arbitration proceeding against UBS Financial Services, Inc. (UBS) and UBS Financial Services, Inc. of Puerto Rico (UBS-PR), the Law Offices of Robert Wayne Pearce, P. A. won a $1.45 million plus interest award for one of the firm’s clients this week.
The case arose from a series of unsuitable investment recommendations made by a UBS and a UBS-PR financial advisor that our client purchase and hold an excessive concentration of UBS-PR closed-end bond funds in a leveraged UBS-PR account. Because of the financial advisors’ unsuitable recommendations, our client’s investment was not diversified from an asset allocation standpoint and also from a concentration standpoint, as the portfolio was overconcentrated in a single geographic area, namely, Puerto Rico.
UBS and UBS-PR, through their representatives, disseminated false and misleading information to our client about both the nature and risk of owning the closed-end bond fund and the leveraged investment strategy employing UBS and UBS-PR financing schemes through UBS Bank.
UBS, UBS-PR and its employees not only violated the FINRA Code of Conduct, but they also committed fraud, breached their fiduciary duties to our client, and were negligent in advising her on how to safeguard her investment capital. Both UBS and UBS-PR also negligently failed to supervise its employees in connection with managing our client’s account. Consequently, our client suffered substantial damages.
Had UBS Puerto Rico enforced its own policies and procedures and followed industry rules and regulations, our client may not have suffered such substantial investment losses. Fortunately, the arbitrators recognized the brokerage firms’ negligence and issued an award in favor of our client.
This is the second arbitration award Mr. Pearce has won in favor of our clients against UBS-PR. The first arbitration award, in favor of Said Mudafort, can be found here: https://www.secatty.com/files/mudafort_arbitration_award.pdf The most recent award, in favor of Christel Bengoa, can be found here: https://www.secatty.com/files/bengoa-_award.pdf Attorney Pearce has also successfully negotiated numerous settlements for other clients of ours who have retained our firm in hopes of recovering their investment losses against UBS-PR.
Have you suffered losses in your UBS Financial Services, UBS Puerto Rico or other brokerage firm investment account due to the unsuitable recommendations and/or misrepresentations of your broker? Do you believe your investment portfolio is overconcentrated in closed-end bond funds? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against UBS and UBS Puerto Rico stockbrokers who may have engaged in misconduct and caused investors losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.