Concerned about investment losses in Puerto Rican municipal bonds?
Have you suffered losses investing in Puerto Rican municipal bonds? If so, The White Law Group may be able to help you recover your losses by filing a FINRA arbitration claim against the brokerage firm that sold you the investment.
A FINRA arbitration panel awarded nearly $9 million to an investor, Luis R. Romero Lopez, who claimed that he was hurt by the purchase of Puerto Rican municipal bonds and closed-end bond funds bonds from UBS Financial Services Inc.
FINRA found that UBS and UBS Puerto Rico were liable for $7.983 million in compensatory damages and $1 million in punitive damages.
According to Investment News, the punitive damages were awarded because UBS gave Lopez multiple loans with which he continued to buy more bonds. FINRA alleges in the award on February 16 that UBS showed “extreme recklessness and indifference to the consequences of loan recycling.”
Mr. Lopez filed his arbitration claim after the market for Puerto Rico’s $70 billion muni debt hit the bottom during the summer of 2013.
UBS denied the claims and also countersued Mr. Lopez for failing to repay loans. The original $9 million awarded to Mr. Lopez in compensatory damages was reduced by $1.016 million awarded to UBS, resulting in a total of $7.983 million in compensatory damages for which UBS was liable.
UBS Financial Services Inc. lost an $18.6 million arbitration claim, in December, from losses to other clients who invested in Puerto Rico municipal bonds.
If you are concerned about your investment in Puerto Rican municipal bonds and would like to speak to a securities attorney, please call The White Law Group at 888-637-5510 for a free consultation.
The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on the firm please visit our website at www.whitesecuritieslaw.com.