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Articles Posted in UBS

Claimants Lose Retirement Funds in Complex Options Trading Strategy

A retired couple is suing UBS Financial Services (UBS) after they sustained at least $800,000 in losses from investing in the firm’s Yield Enhancement Strategy (YES). 

The investors contend that their UBS broker made misrepresentations and omissions when recommending this unsuitable investment strategy to them and discouraged them from leaving the YES program even as their losses mounted. Now, the investors are seeking up to $1,000,000 in damages, losses, and other costs.

Investors Claim UBS YES Strategy Was Mismarketed To Them: SEC Looking Into the Allegations

If you are an investor whose UBS broker recommended that you employ the UBS YES (Yield Enhancement Strategy) and you’ve since suffered significant losses, you may have grounds for an investment fraud claim. 

Unfortunately, UBS and its registered representatives may have been making unsuitable recommendations of this complex investment strategy to customers, as well as misrepresenting the risks involved. 

UBS To Offer Redemptions to ETRACS ETN Investors After Coronavirus-Spurred Crash

If you are an investor who was sold UBS ETRACS exchange-traded notes (ETNs), please contact our investor lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) today. ETRACS ETNs are complex and risky investments and they are not suitable for every investor. 

UBS recently announced that it was offering mandatory redemptions for certain ETRACS ETNs while freezing trading of others after the market crashes spurred by the novel coronavirus (COVID-19) pandemic. UBS ETRACS ETN investors have lost a lot of money. 

Coronavirus (COVID-19) Update: YES Strategy Is Vulnerable To Losses Now Markets Are Rough

The World Health Organization (WHO) has just declared the coronavirus a pandemic, with the United States President Donald Trump announcing a travel ban involving more than two dozen nations. As if these health concerns weren’t bad enough, the latest Coronavirus update has also placed the markets in a panic. Dow Jones dropped by thousands of points and the S&P 500 index has also taken a dive. 

While the stock markets do typically rebound after a sharp plunge, we are currently living in uncertain times due to COVID-19. As one Bank of America Merrill Lynch report cited in a Reuters article, the coronavirus is the type of “slow-moving train wreck” in which the market “slowly and progressively” realizes its “magnitude.”

UBS YES Strategy Losses May Be Grounds For A Claim

Our investment fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are continuing to offer free, no-obligation case consultations to investors that lost money in the UBS Yield Enhancement Strategy (YES). SSEK Law Firm represents clients throughout the United States. 

Investor fraud claims over UBS YES Strategy losses continue to grow. Among the allegations against UBS are that its brokers made unsuitable recommendations of this complex strategy and misrepresented its risks to many customers, causing at least $60M in losses, with some reports saying that this figure could be much higher. 

UBS Financial Broker Accused Of Unsuitable Recommendations 

If UBS stockbroker, Christopher Wayne Tolman, recommended that you employ UBS’s Yield Enhancement Strategy (YES) for your investments and you sustained significant losses as a result, our securities fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) want to talk to you. 

Unfortunately, investors have lost about $60M from using this complex investment strategy that many were under the impression was safe and low risk. 

UBS Loses Another Puerto Rico Bonds & Closed-End Fund Case

More than six years after thousands of investors lost many millions of dollars from investing in Puerto Rico bonds and closed-end bond funds, UBS Puerto Rico (UBS-PR) is still being held to account for the financial losses faced by many of its clients. 

This includes one claimant who was recently awarded over $150,000 in compensation plus interest, other costs, and fees in her Financial Industry Regulatory Authority (FINRA) arbitration case against the firm.  

UBS Group Fined $51M By Hong Kong Securities Regulator

The Hong Kong Securities and Futures Commission (SFC) is ordering UBS Group AG (UBS) to pay a $51M fine for overcharging clients between 2008 and 2017. It is also ordering the Swiss banking giant to pay more than $25M in compensation to customers that were harmed. 

According to the Hong Kong regulator, about 5,000 clients paid more than they should have in approximately 28,700 transactions. This happened after UBS advisors and assistants added padding to spreads involving bonds, as well as structured note trades and charging extra fees. UBS Group is accused of not disclosing to clients that they were paying these fees. 

SSEK Investigating David Fagenson, A Former UBS Brokerage Investment Advisor 

If you are an investor who worked with former UBS broker, David Fagenson, and suffered substantial losses or suspect you may have been charged excessive fees and commissions, please contact our broker fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today. 

David Fagenson was suspended by the Financial Industry Regulatory Authority (FINRA) last year after he allegedly engaged in unsuitable trading in the accounts of three senior investors ranging in age from their 70s to mid-90s. However, this is not the first fraud allegation in which Fagenson has been involved. 

UBS Financial Services (UBS) brokers Matthew Buchsbaum and Scott Rosenberg are currently the subjects of multiple investor fraud claims by firm clients who blame them for losses they sustained from the UBS YES Strategy. This Yield Enhancement Strategy (YES) is a complex investment strategy and it is not suitable for every investor.

Involving an options overlay strategy, the UBS YES Strategy uses four options having the same expiration date but different strike prices. It employs the strategic buying and selling of SPX options spreads.

UBS YES Strategy investors were told to expect “incremental returns” along with the chance to earn income through low yield assets. 

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