UBS Puerto Rico Bond Funds Dedicated to Delivering Results

UBS Puerto Rico Bond Fund Lawyers Based in New York

Puerto Rico Crisis

With a public debt of over $87 billion, U.S. territory Puerto Rico has left its 3.7 million residents with an estimated debt of $23,000 per resident. A variety of events were blamed to be the cause of this crisis, including the loss of tax incentives for industry, a decrease in the population, an increase in debt levels as well as a bureaucratic government. However, the biggest blame goes to the banks during the 2008 financial crisis that acted as a catalyst leading to Puerto Rico’s debt crisis, especially relating to the UBS Puerto Rico closed-end-bond funds.

UBS Puerto Rico Closed-End Funds

23 closed-end funds were created by UBS Financial Services Inc. Puerto Rico, also known as UBS PR, where they were mostly filled with government-related debt of Puerto Rico. One of the conditions of investing in the UBS was that they have to be Puerto Ricans and investors were attracted to these closed-end funds as interest payments were tax-free – they were not taxed by the state, municipal or federal government taxes – and appeared to make a safe investment for their retirement as they were sold as safe investments. Through these funds, UBS earned over $200 million in underwriting fees through underwriting more than $10 billion worth of bonds. On top of that, UBS also received commissions on the trades of these funds and earned fees while the investment advisors received management fees for managing the funds.

The 23 funds include:

  • the Tax-Free Puerto Rico Fund I-II
  • the Puerto Rico Investors Bond Fund
  • Tax-Free Puerto Rico Target Maturity Fund
  • Puerto Rico AAA Portfolio Target Maturity Fund
  • Puerto Rico Fixed Income Fund I-VI
  • Puerto Rico Investors Tax-Free Fund I-VI
  • Puerto Rico AAA Portfolio Bond Fund I-II
  • Puerto Rico Tax-Free Target Maturity Fund I-II

With limited customers due to the tax-free status, unlisted on any market exchange and having no other banks to sell their closed-end funds to, UBS PR bought over securities and artificially raised the value of the bonds, an unlawful practice classified as stock manipulation, when clients started requested to sell their bonds. As the inventory increased, UBS PR gave out incentives to encourage their financial advisors to make more sales while having existing clients hold on to their bonds for a longer time. Subsequently in 2009, the value of 21 out of 23 of UBS PR funds dipped tremendously and could not be concealed. investors were misinformed by financial advisors to take advantage of the plunge. In 2014, investors were forced to sell at lower prices while others had their investments made into losses.

Meet with a Seasoned New York Litigation Attorney to Discuss Your Case. We Represent Clients Nationwide!

With many clients sharing that their financial advisors have little to no advice regarding their present situation, we represent our clients to make claims against UBS’ recommendations and sales tactics. The risks present in the bonds have been downplayed by sales representatives where UBS leveraged up to 100% of the investments to raise additional cash, where U.S. based funds as not allowed to make such large leverage risks. Investors were also misled to borrow money to fund the investment.

Weltz Law understands the frustrations you may face if you are caught up in the UBS PR debt crisis. Our experienced attorneys can help you assess your case if there are chances of recovery. Contact us at (877) 905-7671 or fill in the online form to schedule a free appointment.


Experienced & Effective
  • 30+ Years of Collective Experience

    Our attorneys have over 30 years of collective experience representing clients in all aspects of securities and commercial litigation.

  • Contingency Fees for Our Securities Law Clients

    We will not receive a penny in attorney's fees unless a positive recovery is obtained in your case. Contact us to see if you're eligible.

  • Free Consultations

    We will assess the merits of your claims and help you decide on the next step.

  • Litigated Claims in Excess of $50 Million for Our Clients

    Our firm is prepared to fight for you to seek maximum compensation.


Word From Former Clients
    Calmly walked me through the process.

    “Due to his hard work, the hearing lasted less than 30 minutes with the judge dismissing the complaint.”

    - L.K.
    Successfully represented me in a number of matters

    “Attentive to every aspect of my matters, always available to speak with me, gave me great advice and fought hard for me every step of the way.”

    - I.S.
    Truly terrific in every way.

    “He cared, he was responsive, and he guided me through a difficult time with compassion and expertise.”

    - F.S.
    I could not recommend him highly enough!

    “He was there to talk me through any questions and concerns I had until we decided on the best option for me.”

    - Securities Industry
    Smart, cost-efficient, and gets results.

    “My go-to lawyer for arbitration and regulatory matters for years.”

    - B.D.

contact us

Dedicated to Delivering Results Fill out the form below or call 877-905-7671 to schedule your free consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.