UBS charged with securities fraud
The State of Massachusetts has charged UBS Securities LLC and UBS Financial Services Inc. with fraud and dishonest conducts, claims a new report from the Boston Business Journal.
Secretary of State William F. Galvin made the charges stemming from UBS' involvement with a sale of auction rate securities. Galvin said UBS had claimed to investors that "the investments were safe, liquid 'cash alternatives' when UBS knew they were not."
UBS is essentially accused of selling securities which were only redeemable in cash at UBS auctions, while already having concluded that the auctions would be shut down. In February 2008, the UBS auctions ceased, and many investors, claims Galvin, were left holding securities which could not be cashed out.
"We are disappointed that the Massachusetts Securities Division has filed this complaint against us, as we, our peers and the industry work toward solution," said Kris Kagel, a UBS spokesman.
READ THE REST.
| 
