Florida Arbitration Panel Refuses To Expunge Advisors’ Record of Options Overlay Case
In December, a Financial Industry Regulatory Authority (FINRA) arbitration panel in Boca Raton, Florida awarded a UBS Wealth management client and retiree $89,675 in his UBS Yield Enhancement Strategy (YES) claim over significant losses he sustained in the brokerage firm’s options overlay strategy.
The award was for his unsuitability claim against UBS Financial Services. He also alleged negligence, fraud, breach of fiduciary duty, negligence, omissions, failure to supervise, and breach of contract.
The arbitrators refused to remove the investor claim from the records of UBS brokers Mark Zeller, who was the customer’s broker, and Scott M. Rosenberg, who is a lead manager in the firm’s YES Strategy. Neither are respondents in the FINRA arbitration case.
The UBS YES program employs an iron condor strategy. This is an options overlay strategy that is complex and can be vulnerable to market volatility. Losses for many UBS YES Strategy investors have been significant over the last few years, including in 2018 after the CBOE Volatility Index reached its highest level in years and then when COVID-19 roiled the markets last year.
Our Florida securities fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are working with investors to recoup their investment losses because their UBS broker recommended that they get involved with its options overlay strategy.
Contact us today so that we can help you explore your legal options.
Zeller and Rosenberg Are Named in Six and Seven-Figure UBS YES Fraud Cases
Mark Allen Zeller has worked in the industry for 27 years, including as a UBS broker and investment advisor. Previously, he also was registered with Citigroup Global Markets and Smith Barney Inc.
According to his BrokerCheck, Zeller has been named in at least one other options overlay fraud claim, which was filed last year. The investor is alleging unsuitability and misrepresentations and is seeking $1.2M in damages.
Scott Michael Rosenberg is a UBS broker that our seasoned YES Strategy attorneys have been investigating for some time now. He and UBS stockbroker Matthew Stern Buchsbaum are considered leaders of the firm’s options overlay strategy and both of them motivated other registered representatives at the firm to market the options overlay strategy to customers.
Rosenberg has 22 customer disputes over UBS YES Strategy losses. Most of these are still pending and the claimants are seeking damages in the six- and seven- figures. This includes two cases in which the investors are seeking at least $6M in damages.
Matthew Buchsbaum is named in 29 customer disputes, again most of them still pending. This includes one investor who is seeking $16M in damages.
UBS YES Strategy Was Misrepresented & Unsuitably Recommended to Customers
Many UBS YES Strategy investors were told to anticipate incremental returns and the opportunity to make money through low asset yields. Touted as low-risk and safe, both proved to be true as long as the markets were stable.
Instead, many UBS YES Strategy investors, including wealthy investors, are reporting huge financial losses and alleging unsuitability, misrepresentations, excessive trading, and other claims. In Florida, call SSEK Law Firm at (813) 560-2992 for legal advice if you were affected. Throughout the US, call our securities law firm at (800) 259-9010.