Mass. Charges UBS With Misleading ARS Clients

Law360, New York (June 26, 2008, 12:00 AM EDT) -- Two UBS AG units misled customers who bought their retail auction rate securities, fraudulently marketing the products as safe, liquid “cash alternatives,” the Massachusetts Securities Division alleged in a complaint on Thursday.

The division lodged the administrative complaint just over a month after UBS agreed to return more than $35 million to Massachusetts municipalities and government agencies in order to settle the state attorney general's questions on whether the bank's ARS were legal investments under state law.

“UBS pushed the sales of these instruments as 'cash...
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