Jose Ramirez, UBS, Securities Fraud Investigation

Jose Ramirez, former UBS Broker sentenced to Prison for Fraud

According to reports Investment News last week, Jose Ramirez, former top UBS broker in Puerto Rico was sentenced to a year and a day in prison after pleading guilty to criminal bank fraud in November.

Ramirez reportedly admitted to profiting by nearly $1 million in customer commissions, by selling UBS proprietary closed-end bond funds, according to CNBC. Many of his clients reportedly lost their life savings due to the scheme.

According to his FINRA BrokerCheck report, Ramirez was a registered representative with UBS for sixteen years until he was reportedly fired in 2014 because “he had permitted, and in some cases encouraged, certain clients to reinvest non-purpose loan proceeds into closed-end funds in violation of firm policy and the clients’ loan agreements, and provided misleading responses to branch management when asked about certain account activity.”

His broker reports states that Ramirez has 77 customer complaints since 2012. According to the SEC’s complaint, Ramirez misled customers about the safety of the closed-end funds and the risks of investing in them with borrowed money. He also is alleged to have lied to his branch manager when questioned about suspicious transactions in the closed-end mutual funds. He was barred from working in the securities industry in May 2014.

As we have previously reported, in regards to its sales of Puerto Rico closed-end bond funds, UBS has settled with the Financial Industry Regulatory Authority Inc. and the Securities and Exchange Commission for close to $34 million. It has also paid out nearly $480 million to clients in FINRA settlements and awards as of January 2019, according to CNBC.

Recovery of Investment Losses

The White Law Group continues to investigate potential arbitration claims involving UBS’s sale of Puerto Rico closed end funds.

If you would like to discuss your litigation options with an experienced securities attorney, please call The White Law Group at (888)637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero, Florida.

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