Have you suffered losses with UBS broker Ramiro L. Colon III? If so, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration claim.

The Securities and Exchange Commission (SEC) recently filed a complaint against Ramiro Colon and UBS Puerto Rico for failure to properly supervise a former broker. At the time, Colon was the branch manager.

The former broker, Jose Ramirez, is accused of advising customers to take out loans to purchase closed-end funds, despite UBS’s policy which prohibits purchasing securities with borrowed money. The closed-end funds were heavily invested in Puerto Rico municipal bonds and suffered significant
losses.

The SEC said Colon was alerted to the possibility of Ramirez’s misconduct but rather than investigate the situation, he expected Ramirez explanation and did not follow up with the client. In addition, the SEC accuse Colon of ignoring other red flags, including that the line of credit organizations by Ramirez were far higher than other brokers at the branch.

Without admitting or denying the allegations and charges, Colon agreed to a one year suspension and to pay $25,000 penalty.

According to BrokerCheck, 19 customer disputes have been filed with the Financial Industry Regulatory Authority (FINRA) that mention Colon.

The White Law Group continues to investigate potential arbitration claims involving UBS’s sale of Puerto Rico closed end funds. To learn more about the SEC complaint involving Ramiro Colon, read our previous post here.

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.