High Net Worth Individual Investor Alleges That UBS Group AG Persuaded Him To Buy On Margin
Guo Wengui, a rich Chinese businessman exiled in New York, has filed a lawsuit against UBS Financial Group after losing $500M.
Wengui contends that the bank pressured him into borrowing funds to invest in shares of Haitong Securities, Co., a brokerage firm in China. This high net worth institutional investor alleges that in 2015, UBS forced the stock’s sale during both a 45% drop in Haitong’s shares, which were traded in Hong Kong and a market route. Guo said that he lost his entire investment.