SAN JUAN, Puerto Rico--(BUSINESS WIRE)--The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”), www.sueubspuertorico.com, and Carlo Law Offices, announced today that it has broadened its ongoing investigation of UBS Financial Services Inc. of Puerto Rico, as a result of the recording of former UBS Puerto Rico Chairman Miguel Ferrer pressuring brokers to sell risky Puerto Rico closed-end bond funds.
The recording released by Reuters shows former Chairman, Miguel Ferrer, pressuring and berating UBS (NYSE: UBS) brokers to sell risky UBS Puerto Rico closed-end bond funds. The brokers came up with a list of 22 reasons which made them reluctant to sell the funds, including lack of liquidity, excessive leverage, oversupply and the financial instability in Puerto Rico.
“This newly discovered evidence supports what we have heard from our clients from the very beginning of our investigation. This is not only a matter of negligent supervision of brokers, misrepresentation of the risks of the funds, or the use of illegal loans. The statements by Miguel Ferrer are evidence of a systemic culture of misconduct originating from the most senior management at UBS Financial Services Inc. of Puerto Rico,” according to Klayman & Toskes securities attorney Steven D. Toskes.
According to Toskes, “this indication confirms the worst fears of our clients who placed their trust in UBS, and gave them their hard-earned savings to protect. It shows that UBS intentionally sold unsuitable investments and over-concentrated investors in risky UBS Puerto Rico bond funds, even against the advice of their own brokers.”
Klayman & Toskes, PA and Carlo Law Offices are dedicated to the rights of Puerto Rico investors. Puerto Rico investors who suffered losses as a result of FINRA sales practice violations may be able recover their losses in a FINRA arbitration claim.
About Klayman & Toskes
Klayman & Toskes, a leading securities and litigation law firm, practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors. The firm represents investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.