Shepherd Smith Edwards & Kantas LLP Filing Claims On Behalf Of Clients Of David Lugo And UBS Financial Services, Inc.

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Oct 11, 2013, 04:52 ET

SAN JUAN, Puerto Rico, Oct. 11, 2013 /PRNewswire/ -- Lawyers with the Securities Law Firm of Shepherd Smith Edwards & Kantas LLP, http://www.ubs-taxfree-puertorico.com/, are filing claims on behalf of clients of David Lugo ("Lugo") and UBS Financial Services, Inc. David Lugo is likely UBS's largest producer in Puerto Rico, with almost $900 million in assets under his management. That means that bad recommendations from Lugo are likely to affect many, many more people than recommendations from most other brokers.

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According to the client complaints, Lugo recommended that his clients invest huge portions of their accounts, which also equated to huge portions of the clients' 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.

Other UBS clients have also reportedly been told that there simply is no market currently for the UBS proprietary Puerto Rico municipal bond funds, and as such those clients holding those securities cannot liquidate their holdings and try to stop their losses. This is another risk of these investments that Lugo purportedly failed to warn his clients about.

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. Partners with the firm will be in and around San Juan from October 13^th-October 15^th 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.

Shepherd Smith Edwards & Kantas LLP has 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.

Contact Info: 800-259-9010

713-580-8914 to speak to Spanish fluent staff

Sam Edwards [email protected]

Kirk Smith [email protected]

SOURCE Shepherd Smith Edwards & Kantas LLP