Panel Orders UBS to pay $505,000 over Puerto Rico Bond Fund Losses
Claimants: Elsie Hernandez Ferrari, Herman Hernandez Hernandez and Annette Hernandez Hernandez
Respondents: UBS Financial Services Inc. and UBS Financial Services Inc. of Puerto Rico
Nature of Dispute: Customers vs. Member Firms
Overview of Allegations: The claimants allege UBS through misrepresentation, negligence and unsuitability caused them to lose money on their investments in UBS’s Puerto Rico fixed income funds and tax-free funds as well as Puerto Rico bank stocks underwritten by UBS.
Damages Requested: The claimants requested compensatory damages between $1 million and $5 million as well as unspecified punitive damages, attorneys’ fees and other costs.
Result: An arbitration panel determined that UBS is liable for $505,000 in compensatory damages and $16,075 in hearing session fees.