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Shepherd Smith Edwards and Kantas Investigates Claims Involving Fired UBS Broker David Fagenson

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. 

In the elder investor fraud case that led to his suspension from the industry, the investment advisor is accused of recommending trades that caused one customer’s brokerage accounts to lose over $280K while earning the former broker and his firm $260K in commissions and markups. 

The brokerage accounts of the other two older clients lost about $239K while making Fagenson and the UBS brokerage firm $210K in commissions and markups. 

Elderly Investor Fraud: Fagenson Suspended By FINRA For His Actions 

For any investor to lose that much money while paying so much in fees is a huge problem, but especially for older investors who may be retired or have no other way to recoup those funds except through filing an arbitration claim before FINRA. That’s where our broker fraud lawyers at SSEK Law Firm come in. 

The suspension of Fagenson by FINRA came not long after UBS sued him for failing to pay back $889K on several promissory notes he owed from an arbitration award granted in 2017. 

According to AdvisorHub, the UBS brokerage firm fired Fagenson, who was already on heightened supervision at the time, in early 2016 for multiple alleged violations. Fagenson filed for bankruptcy protection in early 2018. 

While he became a Newbridge Securities broker after he was let go by UBS and worked there until sometime this year, Fagenson is no longer with that broker-dealer nor is he registered as a broker or investment adviser at this time. 

Allegations Made Against The Former UBS Broker 

David Fagenson’s BrokerCheck record shows 18 disclosures, 10 of which are customer disputes that have either been settled or still pending, as well as one other claim that was denied. With 31 years in the industry, the first dispute against Fagenson was brought way back in 1994. 

Allegations against him have included the following: 

  • Negligence
  • Breach of fiduciary duty
  • Failure to follow instructions
  • Misrepresentations and omissions
  • Excessive trading 
  • Unsuitable investment recommendations 
  • Working as an unlicensed broker
  • Inappropriate or excessive fees

In the past, Fagenson has also been a registered investment advisor and broker with Merrill Lynch, Morgan Stanley (MS), PaineWebber, Prudential Securities, and Kidder, Peabody, and Co. 

Broker Fraud Claims 

If you worked with David Fagenson while he was a UBS broker or during any other time while he was a broker with other financial firms and believe you may be the victim of fraud or negligence, contact SSEK Law Firm today. We can help you explore your legal options. 

Over the years, our broker negligence attorneys have recovered many millions of dollars on behalf of our clients who have lost money due to the wrongful or careless acts of their financial representatives. 

Brokerage Firm Misconduct

We also have successfully pursued brokerage firm negligence cases against broker-dealers who failed to properly supervise their brokers who were able to engage in wrongdoing or negligence. 

This may be due to lax policies and procedures, inadequate training programs, or careless hiring policies that exposed their customers to rouge brokers with a previous history of wrongdoing. Your first session with SSEK Law Firm is a free, no-obligation case consultation.

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