FINRA Sales Practice Violations

Misrepresentation & Omission of Material Facts

Our legal team has interviewed many Puerto Rico investors who followed the investment recommendations of UBS Financial Services of Puerto Rico, Santander Securities, Popular Securities, Oriental Financial and Merrill Lynch (“brokerage firms”) and its financial advisors. We have reviewed volumes of Offering Documents, Prospectus, sales materials and client presentations related to the sale of non-traded, closed-end Puerto Rico Bond Funds. Brokerage firm Puerto Rico customers must provide approval in advance of any investment transaction recommended by financial advisors. Because of this fact, Puerto Rico investors must rely upon all of the information provided by brokerage firms to make informed decisions. When information provided by brokerage firms is incorrect or incomplete Puerto Rico investors are at risk and brokerage firms and its financial advisors can be held responsible for investment losses.

A Puerto Rico investor who reasonably relies upon a misrepresentation or omission of a material fact made by a brokerage firm and its financial advisor and as a result of the reliance suffered investment losses they may be able to recover damages. If a FINRA arbitration panel finds that a brokerage firm had a duty to disclose the material facts including risks, customers may be able to recover damages in a FINRA arbitration hearing. A misrepresentation or omission of a material fact by brokerage firm can be made in any of the following situations:

  • failure to conduct adequate due diligence concerning non-traded, closed-end Puerto Rico Bond Funds;
  • failure to disclose of all material risks related to non-traded, closed-end Puerto Rico Bond Funds;
  • failure to disclose all costs related to non-traded, closed-end Puerto Rico Bond Funds;
  • inaccurate representation of credit quality of Puerto Rico Municipal Bonds;
  • unrealistic forecast about Puerto Rico economy; and
  • unrealistic assumptions for investment performance.

Securities fraud claims against UBS Puerto Rico filed under Section 10(b)(5) of the Securities Exchange Act of 1934 or other claims for misrepresentation, may involve some aspects of fraud, deception, misrepresentation, non-disclosure or omission of material facts related to the purchase, or sale of a security. According to the SEC anti-fraud regulations, an investor who lost money may recover damages by proving the investment recommendations made:

  • was based on a misrepresentation or omission of a material fact;
  • was intentional, reckless;
  • was in connection with the purchase, or sale of a security;
  • was relied upon by investors; and
  • resulted in an investment loss.

The misrepresentation or omission of material facts related to investment recommendations by brokerage firms and its financial advisors concerning non-traded, closed-end Puerto Rico Bond Funds may be a cause of action in a FINRA arbitration claim for damages.

Our team of lawyers can help you determine whether an investment loss is the result of brokerage firms and its financial advisor’s misrepresentation or omission of a material fact. Puerto Rico investors who suffer losses, as a result of a misrepresentation or omission of a material fact they may be able recover their losses in a FINRA arbitration claim for damages.

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Visit our Website for the Recovery of UBS Puerto Rico Bond Fund Losses

sueubspuertorico.com

For more information on how to start a claim, or to find out if you have a meritorious cause of action, please contact our law firm, toll free, at (787) 268-6444, for a free consultation.

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