Thursday, June 19, 2014

UBS faces criminal probe for Puerto Rico bond fund sales

YES !!! FINALLY !!!
BUENA NOTICIA PARA LOS RETIRADOS EN PR !!!
Searching for Justice !!!
mj
A man walks past the logo of Swiss Bank UBS on a footbridge connecting two office buildings in Zurich
By Emily Flitter
June 19, 2014
CHICAGO TRIBUNE
NEW YORK (Reuters) - U.S. authorities are probing UBS AG for criminal fraud after a former broker in Puerto Rico allegedly directed clients to improperly borrow money to buy mutual funds that later plunged, according to lawyers representing some of the investors.

At issue is whether UBS executives in Puerto Rico and in the United States knew proceeds from loans made by a Utah unit of the Swiss bank were used in a way that violated its own lending rules. If they knew about the practice and did not stop it, they could be criminally responsible for the alleged fraud.

The investigations are the latest headache for UBS, which has faced myriad lawsuits and probes since the financial crisis. Last week, independent analysts estimated that the bank might have to pay $8 billion in fines and settlements linked to alleged price-manipulation in currency markets.

Puerto Rico-based lawyers Harold Vicente-Gonzalez and his son, Harold Vicente-Colon, said they were representing several dozen people who were clients of UBS Financial Services Inc.


MORE: http://www.chicagotribune.com/business/sns-rt-us-ubs-puertorico-fraud-exclusive-20140619,0,2693952.story