{"id":1693,"date":"2015-08-16T20:09:47","date_gmt":"2015-08-16T20:09:47","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2015\/08\/ubs_puerto_rico_branch_manager"},"modified":"2022-03-22T14:26:32","modified_gmt":"2022-03-22T19:26:32","slug":"ubs-puerto-rico-branch-manager","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ubs-puerto-rico-branch-manager\/","title":{"rendered":"UBS Puerto Rico Branch Manager Had Warned that Brokers Were Pushing Improper Loan Practices"},"content":{"rendered":"

\t\t\t\tAccording to Reuters<\/em>, internal correspondence records show that in 2012, a former branch manager at UBS Puerto Rico (UBS) warned the Swiss banking giant’s officials that its brokers were encouraging customers to get involved in improper loan practices. In a number of emails, Carlos Capacete, who was a branch manager at the time, wrote to at least two bank officers noting his suspicions of misconduct. <\/p>\n

Reuters<\/em> says that in the documents it reviewed, Capacete told regional manager Doel Garcia that he had encouraged Mariela Torres, a UBS Puerto Rico compliance director, to look into suspect loans. In another email, Capacete followed up with his inquiry to see if the loans had been investigated for possible misuse involving the bank’s credit lines. <\/p>\n

Then, in yet another email, Capacete documented what he knew about the loans, which he believed were fraudulent, explained how he discovered the purported wrongdoing, and noted his efforts to notify Torres about the alleged misconduct. Capacete also wrote that a UBS attorney had told him that the firm had conducted an audit and found that his suspicions were wrong.<\/p>\n

Despite this alleged audit, late last year UBS reached a $5.2 million municipal bond settlement with Puerto Rico’s Office of the Commissioner of Financial Institutions to resolve allegations of improper loan practices. The bank settled that case without denying or admitting to the charges. It did, however, consent to enhancing its supervision of several brokers whom regulators said may have steered clients toward improperly borrowing money to purchase more funds. UBS also terminated a broker for the same allegations and received an arbitration award of $2.5 million against it in an early case concerning the same broker.
\n Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

According to Reuters, internal correspondence records show that in 2012, a former branch manager at UBS Puerto Rico (UBS) warned the Swiss banking giant’s officials that its brokers were encouraging customers to get involved in improper loan practices. In a number of emails, Carlos Capacete, who was a branch manager at the time, wrote to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3922,4039,3755],"tags":[],"class_list":["post-1693","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-municipal-bonds","category-puerto-rico-bond-funds","category-ubs"],"yoast_head":"\nUBS Puerto Rico Branch Manager Had Warned that Brokers Were Pushing Improper Loan Practices — Investor Lawyers Blog — August 16, 2015<\/title>\n<meta name=\"description\" content=\"According to Reuters, internal correspondence records show that in 2012, a former branch manager at UBS Puerto Rico (UBS) warned the Swiss banking giant's — August 16, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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