Two FINRA Arbitration Panels Order Firm To Pay UBS YES Customers for Their Losses
In separate UBS Yield Enhancement Strategy (UBS YES) investor cases, two Financial Industry Regulatory Authority (FINRA) arbitration panels have awarded UBS Financial Services customers $1.18M and $1.4M, respectively. These are the latest awards against the broker-dealer, whose high-net-worth investors have lost significant sums of money in the firm’s proprietary, complex options trading strategy.
Due to the most recent rulings, the broken dealer will have to pay UBS YES customers more than $7.6M in 2022. In May, two investors were awarded $3.9M. Various other UBS YES customers were awarded $1.2M in March, and In February 2022, a claimant and two of his family trusts were also awarded $1.875M.
Other FINRA arbitration panels have also awarded UBS YES investors in past years, including a $400K award that Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) secured for Baltimore, Maryland, claimants in 2021.
Our UBS YES investment lawyers are investigating claims of losses by investors who were misled into believing this iron condor strategy was safe for them. Most Yield Enhancement Strategy investors have suffered severe investment losses of 20% in the six-, seven-, or even eight-figures.
UBS Broker William Cerf in New York Allegedly Worked With Claimants
In one of the latest cases, a three-person FINRA arbitration panel in Albuquerque, New Mexico, awarded one couple $1.4M in compensatory damages, legal fees, and other costs. The Trust alleged that considering the investors’ risk tolerance level and investment goals, the UBS YES program was an unsuitable recommendation. The claim also accused the broker-dealer of misrepresentation, negligence, breach of fiduciary duty, failure to supervise, and breach of contract.
According to UBS’s statement, UBS Financial Services broker William Montgomery Cerf was the registered representative who worked with these investors. Cerf’s CRD on BrokerCheck notes that he is still involved in several pending UBS YES claims in which customers collectively seek over $12.6M.
Cerf and many other UBS brokers allegedly promoted the firm’s Yield Enhancement Strategy to clients.
Couple Accuses UBS Financial Services of Supervisory Failures and Fraud
A FINRA arbitration panel, on June 2022, based in Los Angeles, ordered the firm to pay three investors—a couple and their Trust—$1.18M. The claimants alleged negligent supervision, breach of contract, fraud, and other causes of action.
UBS Yield Enhancement Strategy Investors Allege Misrepresentations
Involvement in UBS YES was initially supposed to be like taking a margin loan against one’s current holdings to trade options. Investors thought they would boost yields with this iron condor strategy without overexposing underlying assets.
UBS YES customers have consistently stated that the firm’s registered representatives touted these options as a safe and conservative strategy. Which would grant them diversification and steady, incremental returns through low yield. Instead, UBS YES investors have lost hundreds of millions of dollars while the broker-dealer and its financial advisors earned almost $100M a year from these trades.
SSEK Partner and UBS YES Investor Lawyer Sam Edwards:
Experienced Securities Lawyer at SSEK Petition Against UBS YES Investment Law Firm
Over the years, securities lawyers at SSEK Law Firm have filed claims against UBS Financial Services on behalf of investors in FINRA arbitration, mediation, and litigation. Suppose you are an investor who suffered losses while working with a UBS YES investment firm. In that case, you can explore your legal options by scheduling your free, no-obligation case consultation call SSEK Law Firm at (800) 259-9010 today