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.
Tolman is just one of the firm’s financial representatives who touted the UBS YES Strategy to customers. Already, he has been named in two customer complaints. Among the allegations made against Tolman are unsuitable recommendations and misrepresentations. Both customers are seeking $750K and $800K, respectively.
What Does The UBS YES Strategy Involve?
UBS’s Yield Enhancement Strategy involves an options overlay strategy and four options with differing strike prices but identical expiration dates. The strategic purchase and sale of SPX options spreads are a key factor.
Investors are claiming that they bought into the strategy with the understanding that there would be “incremental returns” and the opportunity to make money via low asset yields. Not only that, but the UBS YES Strategy was supposed to be low risk. This was true when the market was stable.
However, at the end of 2018 when volatility hit the market worse than it has in some 30 years, investors were stunned to suffer losses that they never saw coming. It became clear the UBS YES Strategy is not an approach that is suitable for every investor. Most of those who lost money are seeking to recover at least in the six figures.
UBS YES Strategy Brokers
SSEK Law Firm has been hard at work speaking with UBS Yield Enhancement Strategy investors to help them determine whether they have grounds for a claim against UBS Financial and any of its brokers.
Broker-dealers can certainly be held liable for the inadequate and unsuitable recommendations of their registered representatives, as well as for encouraging their representatives to make such recommendations.
Christopher Tolman, who is also a registered investment adviser, has been a UBS broker for 9 years. Prior to that, he was a stockbroker at several other firms, including Credit Suisse Securities, Bear Stearns & Co., Prudential Securities. Inc, and Smith Barney Harris Upham and Co.
Tolman is not the only UBS stockbroker that SSEK Law Firm is investigating related to the UBS Yes Strategy. We are also speaking to customers of UBS brokers, Scott Rosenberg and Matthew Buchsbaum, both of whom are accused of leading UBS’s efforts to get its brokers to promote the firm’s options overlay strategy.
The two men are already named in multiple UBS Yes Strategy complaints by customers. At least 11 customer disputes name Rosenberg with one of the complaints seeking $6M. At least, 20 claims name Buchsbaum with two of the complaints asking for $10M.
SSEK Law Firm is also talking to clients of the UBS broker, Robert Perlman and any of the firm’s other representatives that marketed the UBS YES Strategy to customers. Contact SSEK Law Firm today to request your free, no-obligation case consultation.