Hanley Law is currently investigating claims against Jose Ramirez (CRD No.: 1519748), UBS Financial Services, Inc. (CRD No.: 8174) and UBS Financial Services, Inc. of Puerto Rico (CRD No.: 13042). The Hanley Law recently filed a FINRA Arbitration claim on behalf of a Claimant in which it was alleged that UBS caused Claimant to incur investment losses in excess of $600,000 when UBS, through their registered representative Jose Ramirez, made a recommendation and sale of an over-concentrated position in leveraged Puerto Rican municipal bond funds which were underwritten, issued and administered by UBS. Claimant alleges in the complaint that UBS, and their registered representative, Jose Ramirez, assured Claimant that, among other things, he would safely make a reasonable return on his money by investing in safe funds that held “bonds” guaranteed by the Puerto Rican government. Claimant further alleges that the funds were actually UBS proprietary mutual funds that invested in local municipal bonds and that such funds were underwritten, structured, marketed and managed by UBS and their corporate affiliates. Claimant alleged that unbeknownst to him, leverage was utilized in the funds to boost returns which increased the risks associated with the funds. Claimant further alleged that UBS marketed the funds as conservative investments with a primary investment objective of preservation of capital. Claimant alleged that UBS made an institutional decision to promote their closed-end mutual funds to investors with full knowledge that the funds were leveraged securities that could easily and quickly suffer substantial losses if Puerto Rico’s municipal debt declined in value.
In the recently filed arbitration claim, Claimant alleged that Respondents UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico, through its registered representative Jose Ramirez, breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Claimant alleged that Respondents were negligent and that they failed to perform adequate due diligence on the products offered and sold to Claimant, that they approved unsuitable investment products for sale to their customers, and that UBS recommended and sold unsuitable and risky securities to Claimant. It has been further alleged that UBS breached their customer agreements which obligated UBS to comply with all FINRA, SEC, and other regulatory rules and regulations, as well as state and federal laws, including but not limited to, Florida Statute § 517. Lastly, it has been alleged that UBS’s misconduct constitutes common law fraud, that the Claimant’s account at issue were handled negligently and that UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico were negligent in their hiring, retention, and supervision of their employees.
If you were a client of Jose Ramirez, UBS Financial Services, Inc. or UBS Financial Services Inc. of Puerto Rico and have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.