NEW YORK (Reuters) - UBS AG <UBSN.VX> was ordered by a U.S. regulator to pay nearly $11 million in fines and reimbursements to compensate investors it misled about the safety of debt issued by Lehman Brothers Holdings Inc <LEHMQ.PK> before that bank went bankrupt.
The Financial Industry Regulatory Authority said UBS and some of its financial advisers failed from March to June 2008 to emphasize that Lehman's "100% principal-protection notes" were unsecured, meaning that payment was not guaranteed.
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Lehman filed for Chapter 11 bankruptcy protection on September 15, 2008.
FINRA said UBS agreed to pay a $2.5 million fine and make $8.25 million of restitution to customers. It did not admit wrongdoing in agreeing to settle.
(Reporting by Jonathan Stempel; Editing by Steve Orlofsky)