Dallas Retiree Accuses UBS Of Unsuitably Recommending YES Strategy

Senior Investor Sues UBS Financial For Losses Caused by Yield Enhancement Strategy 

A Texas retiree says UBS’s Yield Enhancement Strategy (“YES”) is to blame for investment losses he suffered over a short time period at the end of 2018.  According to the claim filed with the Financial Industry Regulatory Authority (“FINRA”), the YES program was unsuitably recommended to him as it is a highly risky investment program. Now, the claimant is seeking up to $100,000 in damages.

Our broker-dealer fraud lawyers at Shepherd Smith Edwards & Kantas (“SSEK Law Firm”) are representing this investor as well as several others seeking to recoup wrongful losses from UBS Financial’s YES program. SSEK Law Firm represents investors nationwide, including in UBS YES claims.  The most recent case SSEK Law Firm has filed will be held in Dallas. 

YES Strategy Was Misrepresented, Too Risky For This Older Customer

Despite this Texas retiree’s goals of capital preservation and income, UBS recommended the firm’s Yield Enhancement Strategy program, claiming that it was ideal for his investment objectives. Nevertheless,  what was touted as a way to gain marginally higher yield with limited risks proved to be “grossly and unsuitably misrepresented.”  The UBS YES program is, in fact, a complex, high-risk options trading investment strategy that has caused thousands of UBS customers financial harm.

If this senior investor’s portfolio had been appropriately invested, he would have made a reasonable return. Instead, he lost at least $80,000, if not more, in less than six months. 

Now, this claimant is alleging unsuitability, misrepresentations and omissions, breach of contract, negligence, broker fraud, breach of fiduciary duty, unjust enrichment, and failure by UBS to supervise his brokerage account and its YES Strategy. 

It is important to note that using a risky strategy to unsuitably invest a retiree’s money can be grounds for elder investor fraud allegations. 

Brokers Profited From UBS YES Strategy Even As Investors Lost Money

Managed by the firm’s Portfolio Management Program, which is led by UBS registered representatives Matthew Buchsbaum, Scott Rosenberg, Sonia Attkiss, and Gerald Costello—all of whom have been named in numerous UBS YES investor fraud lawsuits—this program uses an options overlay strategy. 

The options strategy itself is called the Iron Condor Strategy, it involves buying and selling SPX options spreads. It is way too complex and risky for most retail investors and certainly any conservative investors, including retirees. 

And yet, UBS Financial and its financial advisors have continued to tout its YES program as lower risk, market neutral, less volatile, and more diversified than what it actually is to investors for whom this strategy is unsuitable. While the broker-dealer and its brokers have earned high commissions, most UBS YES investors paid fees that have far exceeded any benefits. 

UBS YES Lawyers

Our investment fraud lawyers represent retirees and other retail investors in their broker fraud claims against firms and their registered representatives that caused wrongful investment losses. For 30 years, we’ve successfully fought for our clients in helping them recover their damages and investment losses. 

Already, SSEK Law Firm has filed a number of UBS YES fraud lawsuits for claimants against the firm. Contact us online or call (800) 259-9010 or (214) 613-5306 to learn about your options to recover your UBS YES losses.

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