In the Matter of UBS Financial Services Inc. of Puerto Rico Admin. Proc. File No. 3-14863
Oct. 6, 2022
On May 1, 2012, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against UBS Financial Services Inc. of Puerto Rico (“Respondent”). In the Order, the Commission found that, from May 15, 2008 through September 30, 2009, the Respondent violated federal securities laws by making misleading statements to investors, concealing a liquidity crisis, and masking its control of the secondary market for 23 proprietary closed-end mutual funds. The Commission ordered the Respondent to pay a total of $26,609,739.94 in disgorgement, prejudgment interest, and a civil money penalty, and created a Fair Fund (the “Fair Fund”), pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty, along with the disgorgement and prejudgment interest, collected could be distributed to those harmed by the Respondent’s misconduct. See the Commission’s order: Release No. 33-9318.
The Respondent has paid a total of $26,609,739.94 into the Fair Fund for the distribution to harmed investors.
On May 22, 2012, the Commission issued an order appointing Damasco & Associates LLP (“Damasco”) as the Tax Administrator of the Fair Fund. Damasco was acquired by Miller Kaplan Arase LLP and on June 30, 2017, the Commission issued a notice of name change for the Tax Administrator.
On January 8, 2013, the Commission issued an order appointing A.B. Data Ltd. as the Fund Administrator to oversee the administration and distribution of the Fair Fund, and setting the administrator’s bond amount. See the Commission’s order: Release No. 34-68600.
On January 6, 2017, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The notice provided the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s notice: Release No. 34-79754 and the Proposed Plan.
On February 21, 2017, the Commission issued an order approving the plan of distribution and published the approved plan of distribution (“Plan”). See the Commission’s order: Release No. 34-80070 and the Plan, Exhibit A, and Exhibit B.
The Plan provides that the distribution of the Fair Fund shall be made to those investors of Eligible Securities who were harmed, pursuant to the methodology in the Plan of Allocation, by the Respondent’s omissions or misrepresentations concerning the pricing of their investments from May 15, 2008 through September 30, 2009, and/or by the Respondent’s failure to execute marketable sell orders placed by the investors from March 1, 2009 through September 30, 2009.
Claim forms must be postmarked no later than: June 10, 2019. The claim form may found at www.UBSPRFairFund.com.
On June 30, 2020, the Commission issued an order directing the disbursement of $27,063,708.73 from the Fair Fund for distribution by the Fund Administrator to harmed investors in accordance with the Plan. See the Commission’s Order: Release No. 34-89195.
For more information, please contact the Fund Administrator:
A.B. Data Ltd.
Telephone Number: 866-217-4458