SAN JUAN, Puerto Rico, Dec. 6, 2013 /PRNewswire/ -- Lawyers with the Securities Law Firm of Shepherd Smith Edwards & Kantas LLP, http://www.ubs-taxfree-puertorico.com/, are representing numerous former clients of David Lugo ("Lugo") and UBS Financial Services, Inc. ("UBS"). A claim on behalf of one client alone, seeking the recovery of approximately $15 million, has already been filed, and the firm has agreed to represent a number of other former clients of Lugo to attempt to recover losses suffered as a result of Lugo's investment recommendations.
The law firm's current clients have alleged that Lugo recommended that the clients invest huge portions of their accounts, which also were often large concentrations of the clients' total net worth, in Puerto Rico municipal bonds and UBS proprietary Puerto Rico municipal bond funds. These securities were marketed and sold as low risk investments that would pay the clients high, tax advantaged dividends.
These clients have also claimed that Lugo did not warn them that the UBS bond funds were highly leveraged, and that Lugo also recommended that the clients open a margin account with UBS to increase their investments in the Puerto Rico municipal bonds with borrowed funds. They claim that they were not warned that this was a highly speculative investment strategy with a huge risk of loss of principal. As a result of these recommendations, these clients saw tremendous losses in their accounts, which often represented the clients' life savings. Attorneys with the law firm Shepherd, Smith, Edwards & Kantas LLP are currently in the process of trying to recover these losses for Lugo's clients.
If you are or were a client of David Lugo, or suffered losses in any other municipal bond investments made at the recommendation of your broker, contact the law firm of Shepherd, Smith, Edwards & Kantas LLP for a free, confidential evaluation of your account. Attorneys will be in Puerto Rico from December 11th-13th meeting with individuals who suffered losses in Puerto Rico Municipal bonds. If you are interested in meeting with one or both of these attorneys, please contact us as soon as possible.
We have a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. For more than two decades, our firm has represented thousands of investors nationwide to recover losses. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. More information can also be found on our blog at http://www.stockbrokerfraudblog.com/2013/10/puerto_rico_municipal_bonds.html.
SOURCE Shepherd Smith Edwards & Kantas LLP