Bloomberg -- UBS AG said it put a financial advisor on administrative leave in Puerto Rico while the Swiss bank reviews loans issued to clients. One brokerage customer said he was given credit to buy risky bond funds holding the islands government debt.
UBS employees in Puerto Rico circumvented curbs on margin loans to generate revenue for the Zurich-based company, according to a Sept. 30 arbitration claim filed in San Juan with the Financial Industry Regulatory Authority on behalf of Victor M. Gomez Jr. The bank didnt adequately explain that UBS controlled trading and set prices in the secondary market, according to the complaint, which cited a previous order from the SEC.
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