SEC v. Jose G. Ramirez Jr., No. LR-23369, District of Puerto Rico (Sept. 29, 2015) — Press Release
raw: Jose G. Ramirez Jr.
Jose G. Ramirez Jr., No. LR-23369 (Sept. 29, 2015)
Jose G. Ramirez Jr., a former UBS Financial Services broker in Puerto Rico, orchestrated a fraudulent scheme generating at least $2.8 million in illicit commissions, and was terminated in January 2014.
Jose G. Ramirez Jr. allegedly misled customers into using credit line proceeds to purchase shares in UBS-affiliated closed-end mutual funds, generating at least $2.8 million in illicit commissions. The funds were heavily invested in declining Puerto Rico municipal bonds, and customers were required to pay down a portion of the loans or risk having their investments liquidated. Ramirez was charged with violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act along with Rule 10b-5.
Jose G. Ramirez Jr., a former top broker at UBS Financial Services Incorporated of Puerto Rico, orchestrated a fraudulent scheme that involved using credit line proceeds from UBS Bank USA to purchase shares in affiliated closed-end mutual funds. Ramirez allegedly made material misrepresentations and omissions, increasing his compensation by at least $2.8 million and misleading customers about the safety of the funds. The funds were heavily invested in declining Puerto Rico municipal bonds, and customers were required to pay down a portion of the loans or risk having their investments liquidated. To evade detection, Ramirez instructed customers to transfer money from their line of credit to an outside bank account before depositing the funds into their UBS brokerage account and purchasing the closed-end funds. Ramirez was terminated by UBS in January 2014, and the SEC alleges he violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act along with Rule 10b-5.
Exhibits & Attached Documents (1)
Extracted insights
- $2.80M $2.8 million $1M–$10M
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- agency the securities and exchange commission
- The Securities and Exchange Commission charged Jose G. Ramirez, Jr.
- Jose G. Ramirez Jr. made material misrepresentations and omissions in a fraudulent scheme involving credit line proceeds from a UBSPR-affiliated bank to purchase shares in UBSPR-affiliated closed-end funds
- Securities and Exchange Commission charged Jose G. Ramirez Jr.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23369 / September 29, 2015 Securities and Exchange Commission v. Jose G. Ramirez Jr., Civil Action No. 15-cv-02365 (USDC District of Puerto Rico, filed September 29, 2015) The Securities and Exchange Commission today charged Jose G. Ramirez, Jr., a former top broker at UBS Financial Services Incorporated of Puerto Rico ("UBSPR"), who made material misrepresentations and omissions and orchestrated a fraudulent scheme involving the use of credit line proceeds from a UBSPR-affiliated bank to purchase shares in UBSPR affiliated closed-end mutual funds. The complaint filed in federal court in Puerto Rico against Jose Ramirez, Jr., a former registered representative in UBSPR's Guaynabo branch office alleges that Ramirez increased his compensation by at least $2.8 million by having certain customers use proceeds from lines of credit with UBS Bank USA to purchase additional shares in UBSPR closed-end mutual funds. To evade detection, Ramirez allegedly instructed the customers to transfer money from their line of credit to an outside bank account before depositing the funds into their UBSPR brokerage account and purchasing the closed-end funds. The funds invested heavily in Puerto Rico municipal bonds and lost value as the Puerto Rico bond market declined, requiring the customers to pay down a portion of the loans or risk having their investments liquidated. According to the SEC's complaint, Ramirez misled customers about the safety of the closed-end funds and the risks of investing in them with borrowed money. He also is alleged to have lied to his branch manager when questioned about suspicious transactions in the closed-end mutual funds. Ramirez was terminated by UBSPR in January 2014. As a result of this conduct, the SEC's complaint alleges Ramirez violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC's investigation was conducted by Sean M. O'Neill of the Miami Regional Office and was supervised by Jason R. Berkowitz. Russell Koonin and Sean M. O'Neill will lead the SEC's litigation against Ramirez. SEC ComplaintU.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23369 / September 29, 2015 Securities and Exchange Commission v. Jose G. Ramirez Jr., Civil Action No. 15-cv-02365 (USDC District of Puerto Rico, filed September 29, 2015) The Securities and Exchange Commission today charged Jose G. Ramirez, Jr., a former top broker at UBS Financial Services Incorporated of Puerto Rico ("UBSPR"), who made material misrepresentations and omissions and orchestrated a fraudulent scheme involving the use of credit line proceeds from a UBSPR-affiliated bank to purchase shares in UBSPR affiliated closed-end mutual funds. The complaint filed in federal court in Puerto Rico against Jose Ramirez, Jr., a former registered representative in UBSPR's Guaynabo branch office alleges that Ramirez increased his compensation by at least $2.8 million by having certain customers use proceeds from lines of credit with UBS Bank USA to purchase additional shares in UBSPR closed-end mutual funds. To evade detection, Ramirez allegedly instructed the customers to transfer money from their line of credit to an outside bank account before depositing the funds into their UBSPR brokerage account and purchasing the closed-end funds. The funds invested heavily in Puerto Rico municipal bonds and lost value as the Puerto Rico bond market declined, requiring the customers to pay down a portion of the loans or risk having their investments liquidated. According to the SEC's complaint, Ramirez misled customers about the safety of the closed-end funds and the risks of investing in them with borrowed money. He also is alleged to have lied to his branch manager when questioned about suspicious transactions in the closed-end mutual funds. Ramirez was terminated by UBSPR in January 2014. As a result of this conduct, the SEC's complaint alleges Ramirez violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC's investigation was conducted by Sean M. O'Neill of the Miami Regional Office and was supervised by Jason R. Berkowitz. Russell Koonin and Sean M. O'Neill will lead the SEC's litigation against Ramirez. SEC Complaint