UBS ordered to pay investor $1 million as Puerto Rico claims roll in

UBS Wealth Management and its Puerto Rico unit have been ordered to pay an investor $1 million in damages after an arbitration panel said brokers encouraged him to invest 100% of his portfolio in risky, proprietary closed-end bond funds.

Juan Burgos Rosado, a 66-year old “quintessential conservative investor,” according to the panel, lost $737,000 of his nearly $1 million portfolio when the value of UBS’ Puerto Rico municipal bond funds collapsed in the fall of 2013. The loss took out most of what Mr. Rosado had saved from his career buying and repairing properties and running a bodega, the panel said.

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