SAN JUAN, PR – March 6, 2014 – (HISPANICIZE WIRE) – The Securities Arbitration Law Firm of Klayman & Toskes, P.A.,, together with Carlo Law Offices, P.S.C. located in Puerto Rico, announced today that they filed a claim against UBS Financial Services Incorporated of Puerto Rico and UBS Financial Services, Inc. (NYSE: UBS) (collectively “UBS”), on behalf of a husband and wife in Puerto Rico who are retirees. The claim, filed with FINRA’s arbitration department, seeks to recover damages sustained in six (6) UBS Puerto Rico Closed-End Bond Funds (“CEBFs”): Puerto Rico Investors Tax Free Fund V, Puerto Rico Investors Tax Free VI, Puerto Rico Fixed Income Fund, Puerto Rico Fixed Income Fund III, Puerto Rico Fixed Income Fund IV and Tax Free Puerto Rico Fund II.

The Complaint alleges that the Claimants trusted UBS and its financial advisor, David Lugo (“Lugo”), with their life savings to recommend investments that would provide income with low risk. The husband had worked for many years to build a successful business and sold that business thinking he had enough money to retire comfortably. Instead of creating a safe, low risk fixed income portfolio, Lugo and UBS recommended its proprietary CEBFs that were leveraged and concentrated in Puerto Rico municipal bonds. UBS and Lugo invested $1.8 million of Claimants’ savings in six (6) of the firm’s proprietary CEBFs. Lugo and UBS failed to disclose to Claimants the risk associated with the UBS PR CEBFs in that they are leveraged, lack diversification, and lack liquidity as they trade on a secondary market that is controlled and operated by UBS. This lack of liquidity increases the risk of the funds. In addition to the recommendation to buy UBS PR CEBFs, Lugo recommended that the husband open a Line of Credit through UBS Bank with his UBS PR CEBFs serving as collateral for the loan. This was yet another unsuitable recommendation.

The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of UBS in connection with the sale of CEBFs to their customers. Current and former customers of UBS, or other full-service brokerage firms in Puerto Rico, who purchased CEBFs, and have information relating to the manner in which the firm represented these products, are encouraged to contact Steven D. Toskes or Lcdo. Raúl A. Reichard, LL.M. of Klayman & Toskes, or Lcdo. Osvaldo Carlo of Carlo Law Offices, at (787) 919-7325, or visit us on the web at