Investors Blame UBS Broker and Edinroc Financial Group Head Jose Cornide For Recommending YES Strategy

Florida Financial Advisor is Named in at Least 10 FINRA Cases, Including One $25 Million Claim 

If you suffered losses while working with UBS Financial Services (UBS) stockbroker, Jose Manuel Cornide, Jr., you may be able to file a Financial Industry Regulatory Authority (FINRA) arbitration claim for your losses. Cornide, who is based out of Coral Gables in South Florida, is the head of Edinroc Financial Group, which is a UBS private wealth management group.

Jose Cornide is named in multiple FINRA arbitration cases brought by customers for losses they suffered from the firm’s Yield Enhancement Strategy (YES Strategy). They are just some of the UBS clients who were sold on what was supposed to be a  low-risk trading strategy that would allow them to earn enhanced yield. Instead, many of these UBS customers are now contending with significant losses. 

At Shepherd Smith Edwards and Kantas, our YES Strategy investment fraud lawyers are speaking to customers of UBS Financial advisor, Jose Cornide, and other firm registered representatives who may have unsuitably recommended this options overlay strategy to investors. Contact us today for your free case consultation.

UBS Yield Enhancement Strategy Program Used Aggressive Iron Condor Strategy 

The UBS YES Program was aggressively marketed to firm customers. This was supposed to employ a market-neutral strategy using equity from an investor’s account. This investment strategy is, in fact, a complex options overlay strategy, referred to as an iron condor strategy. It is highly vulnerable to market activity and can be susceptible to huge losses during volatile times. 

Not only that but since many of these losses would involve options that have limited holding periods, in most instances YES Strategy investors don’t have an opportunity to recoup that money. 

Already, by the end of 2019, YES Program investors had reportedly lost up to 33% of their investment. The market volatility caused by COVID-19 certainly didn’t help matters, only leading to more losses.  

Many UBS YES Strategy investors are now saying they were never properly apprised of the risks involved. Meanwhile, the firm’s brokers have earned hefty commissions from selling this options overlay strategy to customers. 

Jose Cornide is Accused of Misrepresentations and Unsuitable Investment Recommendations 

The pending FINRA arbitration claims naming Cornide appear to involve UBS options overlay strategy and losses that occurred beginning in 2016. Cornide has been with UBS since 2004. 

The claimants are alleging misrepresentations and unsuitable investment recommendations.

According to his BrokerCheck record, the customers filing UBS YES Strategy Claims have suffered significant investment losses in the six figures or much higher, including one FINRA arbitration case from earlier this year requesting $25 million in damages. 

  • 9/2020: The claimant is seeking $3M.
  • 2/2020: This claim is from the customer who is requesting $25M. 
  • 12/2019: This customer dispute is for $1.5M.
  • 11/2019: This FINRA arbitration case is for $500K in damages.
  • 10/2019: This is a $2M options overlay fraud case.
  • 9/2019: The claimant is seeking $1.75M.
  • 8/2019: The customer is requesting $500K in damages.
  • 7/2019: Another unsuitability case related to the options overlay strategy.
  • 6/2019: The claimant is requesting $1.2M in damages.
  • 4/2019: This is a $10M UBS YES Strategy fraud case.

Two other customer disputes for earlier in 2019 that don’t appear to involve the options overlay strategy were denied. An unrelated investor claim from 1998 also was denied.

Before working for UBS, Jose Cornide was a Goldman Sachs(GS) broker for eight years.

UBS YES Strategy Fraud Attorneys 

To find out whether you have grounds for a UBS YES Strategy claim, contact SSEK Law Firm at 800-259-9010. If you have recently worked with UBS broker, Jose Cornide or another UBS financial representative and believe that you have suffered losses in the firm’s YES Program, we would like to speak with you. 

We represent investors nationwide. If you are local to Florida, call our Tampa office at 813-560-2992.

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