Regulators file charges against UBS

BOSTON, June 26 (UPI) -- Securities regulators in Massachusetts filed charges against UBS Financial Inc. for selling securities allegedly without advising customers of their risks.

The complaint concerns auction-rate securities, which are frequently sold to schools and municipalities, The Boston Globe reported Thursday.

The auction-rate market collapsed in February and hasn't reopened, leaving investors stuck with an estimated $220 billion worth of securities they cannot sell, the Globe reported.

But, before its collapse, UBS continued selling the securities to some customers, while warning others that the market was risky, the Globe reported.

Securities regulators in Massachusetts have also been investigating Banc of America Investment Services Inc. and Merrill Lynch & Co., the Globe reported.

In early May, UBS agreed to purchase $37 million worth of securities sold to 17 municipalities and to the Massachusetts Turnpike Authority, the Globe reported.