Articles Posted in UBS

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered losses from dealing with unscrupulous financial advisors selling municipal bonds and municipal bond funds

One of the most prominent trouble spots for investors have been mutual funds and single bonds issued by Puerto Rico, which was slammed by a long-standing debt crisis in recent years in addition to a devastating hurricane and breakdown of its infrastructure.  The island’s government, which issued the bonds, filed for bankruptcy, which triggered a negotiation with bondholders to negotiate its outstanding debt. That meant that bondholders will receive pennies on the dollar. A deal reached earlier this year slashed $8 billion in debts by 40%, according to Bloomberg News.

To date, the Puerto Rican collapse is the largest governmental bankruptcy in U.S. history, involving $129 billion in debts, reports The New York Times. The crisis was first noticed in 2012, when Moody’s downgraded the island’s bonds to near-junk status, which sunk prices of those debt securities. Since the bonds carried constitutional guarantees, investors were led to believe that they were secure. The bankruptcy was triggered since the island’s government was unable to pay back its debts. Investors, who were not fully informed of the fiscal debacle early on, got burned.

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered losses from risky municipal bonds. One of the most troubling investments for investors has been bond mutual funds and single municipal bonds issued by Caribbean territories like Puerto Rico. The island was devastated by Hurricane Maria and a debt crisis. The island’s government, which issued billions in municipal bonds, filed for bankruptcy, which forced bondholders to take losses. Like Puerto Rico, the neighboring Virgin Islands may be facing a debt meltdown of its own.

The U.S. Virgin Islands, also severely damaged by two hurricanes in recent years, is also dealing with an ongoing debt crisis. With only about 100,000 inhabitants spanning three Caribbean Islands, the U.S. protectorate had been issuing high-yield municipal bonds in recent years to fund essential government services such as a power utility. The government owes more than $6.5 billion to creditors, which averages some $19,000 per resident. In addition, the islands have billions in unfunded pension and healthcare obligations. That’s one of the highest per-capita debt loads in the Western Hemisphere.

The debt explosion in the Virgin Islands has gone from bad to worse. Three years ago, credit ratings agencies slashed the ratings on government bonds to junk status. While that made the bonds’ yields more attractive (they rose), it also indicated a higher risk of default. As a result, prices on those issues dropped.

Stoltmann Law Offices has brought arbitration claims against dozens of brokerage firms like Ameriprise Financial, Merrill Lynch, Morgan Stanley, Wells Fargo, and JP Morgan Securities involving the unsuitable recommendations for investors to invest in oil and gas related securities.  In 2014 and 2015, we represented dozens of investors against various firms involving Master Limited Partnerships, or MLPs, which are almost always related to the oil and gas industry.  Then, during a big drop in the price of oil, a lot of oil and gas companies went into bankruptcy, dragging a lot of investor money with them.  History is repeating itself.

The price of oil has completely tanked in the last month. Even before the COVID-19 pandemic, the price of oil was being pressured by a price war involving Saudi Arabia, Russia, and OPEC.  Combined with the broad-based ongoing market crash, oil and gas investments – which are inextricably linked to the price of oil – have suffered catastrophic losses.  There are some well-know names on this list:

Goldman Sachs MLP and Energy Renaissance Fund – GER: Year to Date has dropped from 4.37 to 0.68 per share

If you are interested in suing UBS in a class action lawsuit, the attorneys at Stoltmann Law Offices may be able to help. Every year, UBS gets sued dozens of times in class actions lawsuits, for various violations of state and federal securities laws. UBS, like most other brokerage firms, has a binding arbitration clause in every new account agreement that means that for most claims, if you would like to sue UBS, it must be done through the binding arbitration process, and not in the class action process. There are some avenues through which the brokerage firm can be sued in a class action lawsuit. For example, securities fraud issues where UBS is the underwriter. If you would like to file a class action lawsuit claim against UBS, please call us at 312-332-4200 today.

Stoltmann Law Offices is investigating Royce O. Simpson. He entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). Allegedly, Simpson failed to provide written notice to his member firm of his outside business activities regarding a gold mining operation in Ghana, Africa. FINRA fined him $15,000 and suspended him from associating with any firm for eight months.

Mr. Simpson was registered with: Dover Group, First Ohio Securities Company, Shearson Lehman Hutton Inc., Rotan Mosle Inc., Painewebber Inc., HSBC Securities, Rodman & Renshaw Inc., Everen Securities, J.C. Bradford, UBS Financial Services and Oppenheimer & Co. in Houston, Texas from November 2011 until February 2014. He has two customer disputes against him, and is not currently registered with any FINRA member firm.

If you wish to sue Royce O. Simpson, please call us at 312-332-4200 to speak to an attorney about your options. The call is free with no obligation. We sue firms such as Oppenheimer & Co. for failing to properly supervise their employees.

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