UBS Puerto Rico Bond Funds
Puerto Rico Bond Loss Lawyer Investigating UBS Puerto Rico Bond Funds
The legal team at Zamansky LLC is investigating and actively filing FINRA arbitration cases on behalf of investors who have suffered significant investment losses arising from Puerto Rico bonds. These cases concern both the sales practices of the advisors and the sale of proprietary municipal and leveraged bond funds by UBS Puerto Rico. Our firm believes that the financial advisors at UBS Puerto Rico misled investors regarding the risks associated with investing in UBS Puerto Rico funds. These advisors led investors to believe that the funds were suitable for retirees and conservative investors by advising them they were “safe and secure” investments.
Every Puerto Rico bond loss lawyer at Zamansky LLC is committed to aggressively prosecuting these cases and recovering investment losses for investors. We are currently in the process of investigating wrongful sales practices in connection with the following UBS Puerto Rico Bond Funds:
- Puerto Rico Investors Tax-Free Fund, Inc. Puerto Rico Investors Tax-Free Fund, Inc. II
- Puerto Rico Investors Tax-Free Fund III, Inc.
- Puerto Rico Investors Tax-Free Fund IV, Inc.
- Puerto Rico Investors Tax-Free Fund V, Inc.
- Puerto Rico Investors Tax-Free Fund VI, Inc.
- Puerto Rico Tax-Free Target Maturity Fund, Inc.
- Puerto Rico Tax-Free Target Maturity Fund II, Inc.
- Puerto Rico Investors Bond Fund I
- Tax-Free Puerto Rico Fund, Inc.
- Tax-Free Puerto Rico Fund II, Inc.
- Tax-Free Puerto Rico Target Maturity Fund, Inc.
- Puerto Rico AAA Portfolio Target Maturity Fund, Inc.
- Puerto Rico AAA Portfolio Bond Fund, Inc.
- Puerto Rico AAA Portfolio Bond Fund II, Inc.
- Puerto Rico GNMA & U.S. Government Target Maturity Fund, Inc.
- Puerto Rico Mortgage-Backed & U.S. Government Securities Fund, Inc.
- Puerto Rico Fixed Income Fund, Inc.
- Puerto Rico Fixed Income Fund II, Inc.
- Puerto Rico Fixed Income Fund III, Inc.
- Puerto Rico Fixed Income Fund IV, Inc.
- Puerto Rico Fixed Income Fund V, Inc.
- Puerto Rico Fixed Income Fund VI, Inc.
- Multi-Select Securities Puerto Rico Fund
- Puerto Rico Short Term Investment Fund, Inc.
- UBS IRA Select Growth & Income Puerto Rico Fund
When advisors fail to meet their legal duties to investors and financial losses result, the Puerto Rico bond loss lawyers at Zamansky LLC relentlessly fight to hold advisors accountable and recover money that has been lost.
Our attorneys are leaders in the field of securities arbitration and litigation and are at the forefront of legal issues impacting investors of all sizes and types. Our attorneys understand that no two investors are alike and we are dedicated to providing personalized service and attention to each and every client.
Ways Advisors at Investment Firms Misled Retirees and Other Individual Investors
When you trust a big investment firm like UBS, Santander or Popular Securities to manage your retirement account or investment portfolio, you expect to receive sound investment advice from an experienced advisor. You expect your assets to grow over time, and you expect your advisor to make smart decisions with your best interests in mind.
Unfortunately, at Zamansky, LLC, we know that this is not always the case. Over the past several decades, we have represented numerous clients of UBS, Santander, Popular Securities and other major brokerage firms in Puerto Rico and across the United States, and we have secured millions of dollars in financial compensation for these clients’ fraudulent investment losses. Every Puerto Rico bond loss lawyer at the firm has seen it all when it comes to investment advisors making uninformed decisions and putting their own interests first, and we have seen first-hand the devastation these and other fraudulent practices can cause.
So, in the case of the Puerto Rico bond crisis, how exactly did investment advisors at many of the world’s leading advisory firms mislead retirees and other individuals into purchasing and holding Puerto Rico municipal bonds and shares in Puerto Rico municipal bond funds? Our investigations and FINRA arbitration filings have focused on fraudulent practices including:
- Incompetent Investment Advice – The Puerto Rico bond crisis unfolded slowly over a period of almost five years beginning in 2013. While Puerto Rico’s municipal bonds were long recognized as some among the safest and smartest options for low-risk, long-term investors, this changed gradually as the territory’s financial condition worsened. Based upon our investigations, we believe that investment advisors at UBS Puerto Rico, Santander Investment Services, Popular Securities and other firms failed to take the increasing risk of buying and holding Puerto Rico municipal bonds into account when advising their clients, and this oversight cost many of their clients their entire life’s savings.
- Misrepresentations and Omissions of Material Information – In some cases, it appears that investment advisors misrepresented the territory’s financial condition to their clients, or at least omitted key information when advising their clients on the risks associated with Puerto Rico municipal bonds and bond funds. Individual investors are entitled to expect that they will receive complete and accurate information from their advisors, and these types of misrepresentations and omissions can provide grounds for investors to recover their losses in FINRA arbitration.
- Overconcentration, Unsuitability and Failure to Act – Overconcentration, unsuitability and failure to act are among the most-common allegations in investment fraud arbitration. Our Puerto Rico bond fraud attorneys believe that advisors at large advisory firms like UBS, Santander Investment Services, Popular Securities, and others caused many of their clients to lose substantial sums in Puerto Rico bond investments due to investing excessively in municipal bonds and bond funds, recommending these investments despite the growing risk of default, and failing to pull clients out of their Puerto Rico bond investments before it became too late.
While these are among the most-common issues, they are by no means the only issues we have seen. If you invested in Puerto Rico municipal bonds or bond funds through UBS, Santander, Popular Securities or any other advisory firm and you have suffered investment losses, you deserve to know the truth, and you deserve to win a just financial recovery.
Case Study: Zamansky, LLC Wins Record $3.1 Million FINRA Arbitration Award for UBS-Puerto Rico Investors
One of our firm’s most-notable victories arising out of the Puerto Rico bond crisis was the record-setting $3.1 million arbitration award we secured for two individual investors who lost money with UBS Puerto Rico at the start of the crisis in 2013. The award, which was issued in 2015, was the largest against UBS or any other investment advisory firm arising out of sales of Puerto Rico bond investments, included approximately $2.4 million for direct investment losses plus an additional $700,000 in compensation for interest, costs and fees. We filed numerous claims on behalf of our clients, including:
- Breach of contract and fiduciary duty
- Failure to supervise individual investment advisors
- Improper use of investor funds as collateral for lines of credit
- Unsuitability of investment advice
In this particular case, our clients’ advisors had concentrated their entire investment portfolios in Puerto Rico municipal bonds and proprietary bond funds. This followed UBS Puerto Rico’s marketing of these bonds and funds as conservative investment options even as the island territory’s debt obligations began to spiral out of control.
Puerto Rico Bond Fraud FAQs
Q: Why have investment advisors traditionally recommended Puerto Rico municipal bonds?
Traditionally, municipal bonds – those offered by government entities – have been relatively stable investments for individuals with long-term investment objectives. Government entities are less likely to file for bankruptcy than private corporations, and this means that investors have less risk of losing their investment principal. Puerto Rico’s municipal bonds were particularly attractive for two reasons:
- Since Puerto Rico is an unincorporated state, income from its municipal bonds is not subject to taxation; and,
- Historically, annual returns on Puerto Rico’s municipal bonds have been much higher than the average for municipal bond investments.
Q: What triggered the widespread losses in Puerto Rico bond investments?
While government entities are generally less likely to go bankrupt than private corporations, there are exceptions to every rule. As it turned out, Puerto Rico was one such exception. A shrinking economy, high unemployment and various other factors drove the island territory deep into debt, and this ultimately led to a bankruptcy filing in 2017.
While federal authorities were working on a plan to help bond investors recover their losses, Puerto Rico’s financial condition was dealt another major blow when Hurricane Maria destroyed much of the territory’s infrastructure. While some institutional investors are currently speculating on an eventual recovery, the future of Puerto Rico’s municipal bonds remains uncertain; and, at present, investors’ holdings are worth pennies on the dollar.
Q: How can Puerto Rico bond investors recover their investment losses?
The primary way that investors who lost money with UBS Puerto Rico, Santander Investment Services, Popular Securities and other advisory firms can seek to recover their investment losses is by filing a claim for FINRA arbitration. These firms are required to arbitrate disputes with their investors; and, at Zamansky, LLC, our Puerto Rico bond fraud attorneys have had significant success in arbitration cases involving a broad range of fraud-related claims.
Arbitration is similar to litigation in that it results in a binding decision, but different in that the process is streamlined and typically results in a much quicker resolution. When you contact us, our Puerto Rico bond loss lawyer will provide you with a thorough assessment of your potential financial recovery so that you can make an informed decision about asserting your legal rights.
Q: How long do I have to file a FINRA arbitration claim against my investment advisor?
As an individual investor, you have six years from the date of the fraudulent transaction to file a claim for FINRA arbitration. However, in order to recover your investment losses as soon as possible, you should consult with an attorney about your case right away.
Read more answers to FAQs.
Steps to Take if You Invested in Puerto Rico Municipal Bonds Through UBS, Santander, Popular Securities or Any Other Investment Advisory Firm
1. Collect Your Account Records.
Try to collect your account records for as far back as you have held investments in Puerto Rico municipal bonds or bond funds.
2. Make Copies of Any Emails or Letters You Received from Your Advisor.
Any communications or documents that you received from your advisor could potentially be relevant to proving that you received inadequate, misleading or fraudulent investment advice.
3. Learn More about What Led to Your Investment Losses.
The situation in Puerto Rico is complicated; and, while you don’t need to know everything, learning more about the situation will help you better understand the facts involved in your case. Visit our Puerto Rico Bonds Media page for articles and videos from our investment fraud attorneys.
4. Schedule a Free Initial Consultation.
At Zamansky, LLC every case starts with a free initial consultation. If you invested in Puerto Rico municipal bonds or bond funds, we invite you to call a Puerto Rico bond loss lawyer to discuss your case. We will make arrangements for you to speak with one of our experienced attorneys as soon as possible; and, if you choose to move forward, we will not charge you any fees or costs unless we help you win financial compensation.
What is the Outlook for Investors Who Still Own Puerto Rico Municipal Bonds?
Is it possible that investors who have lost money in Puerto Rico municipal bonds could eventually see the value of their portfolios restored? According to most experts, the future is uncertain at best. Despite news of a “rebound” in early 2018, the reality is that Puerto Rico bond holders are still nowhere close to recouping their investments, and Puerto Rico does not yet have a clear path forward.
Why Choose a Puerto Rico Bond Loss Lawyer at Zamansky, LLC?
If you lost money with UBS Puerto Rico, Santander Investment Services, Popular Securities or another advisory firm, why should you choose Zamansky, LLC to help you pursue a financial recovery in FINRA arbitration?
- Our practice is dedicated to fighting for victims of investment fraud.
- Our attorneys have over 60 years of collective experience representing individual investors.
- We have been actively pursuing cases against these investment firms since 2013.
- We have a national reputation as effective advocates for aggrieved investors.
- We offer transparent legal fees and we will not charge you anything unless we secure a recovery.
Contact a Puerto Rico Bond Loss Lawyer Zamansky, LLC Today
If you have a question concerning the bond funds listed above, or believe that you may be a victim of investment fraud in connection with any of these funds, please contact us at (212) 742-1414 or complete the online client inquiry form. Zamansky LLC offers free, confidential consultations and we respond to all inquiries within 24 hours.