In recent years, many investors have experienced losses due to investments involving Puerto Rico municipal bonds. As of 2013, Puerto Rico, whose economy has been on a downhill slide for years, doubled its borrowing in the municipal bond market in an effort to boost the territory's economy. As a result, many people are now facing a retirement savings loss because of inappropriate recommendations from investment advisors including UBS, Banco Popular, and Banco Santander among others.
Unfortunately, many clients of investment firms who encouraged them to invest in these municipal bonds that are extremely high risk without disclosing those risks are now suffering incredible losses; some victims have literally been left with nothing. Because many investors relied on their advisors' recommendations and concentrated their portfolios in Puerto Rico municipal bond funds which were not diversified, many were unknowingly put at a great risk financially.
The latest news reports indicate that Puerto Rico is likely to default on municipal bond payments in the future, just as the U.S. territory did on July 1 when almost $1 billion in bond payments were due. The fact is, financial advisors continued to recommend clients invest in high-risk bonds even as they knew the risks were increasing due to various factors, such as the phasing out of U.S. government incentives and programs and the continuing decline in the island's economic situation.
If you suspect you are a victim of fraud and have experienced losses after being misguided to invest in Puerto Rico municipal bonds, take action today. Contact securities fraud attorney Diane Nygaard to learn if it may be possible to recover your loss.