SAN JUAN, Puerto Rico, Feb. 6, 2015 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes ("K&T"), www.sueubspuertorico.com, and Carlo Law Offices, commented today on an article and voice recordings released today by Reuters. The recordings show the former Chairman of UBS Financial Services Inc., Puerto Rico, Miguel Ferrer, pressuring UBS (NYSE:UBS) brokers to sell risky UBS Puerto Rico closed-end bond funds. The brokers were berated for coming up with a list of 22 reasons which made them reluctant to sell UBS Puerto Rico bond funds, including the funds' lack of liquidity, excessive leverage, oversupply and the financial instability in Puerto Rico.
Ferrer can be heard telling the brokers at a June 2, 2011 meeting that they need to sell the funds to customers or "get a new job!" The recordings also contain statements by senior broker Ramon Almonte, telling the brokers that Puerto Rico's "fiscal and credit situation has gotten miraculously better."
"We have listened to these recordings and they contain undeniable evidence that UBS management used high pressure tactics on their own brokers, who then used the same tactics to sell risky investments to investors. These admissions are further evidence that UBS aggressively sold unsuitable investments and over-concentrated investors in risky UBS Puerto Rico bond funds. This evidence will increase the value of all claims against UBS," according to Klayman & Toskes securities attorney Steven D. Toskes.
According to Toskes, "These funds were always risky investments, but UBS intentionally failed to communicate those risks to investors, and pressured brokers to not disclose those risks to investors."
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.
Destination: UBS Puerto Rico intentionally failed to communicate those risks to investors, and pressured brokers to not disclose risks to investors.