Securities Fraud Attorneys Blog

Articles Tagged with UBS Financial Services

UBS hit with $23 million Tesla (TSLA) Short-Sale Losses Claim by Investors.

May 24, 2021 | by Joe Wojciechowski

Chicago-based Stoltmann Law Offices represents clients who’ve suffered losses as a result of unsuitable and speculative trading recommendations and strategies. If a broker recommends an awful securities trade – and you lose money – is the broker legally liable? Under rules that govern the conduct of securities brokers and financial advisors through FINRA, the prime U.S. securities regulator, if the trades they recommend are unsuitable, unauthorized, or a part of a larger scheme to defraud, the answer is a resounding “yes”.

A UBS Financial Advisor who promoted to clients the idea of “short-selling” shares of Tesla (symbol TSLA) stock in 2019 and 2020, is accused of multiple violations in a FINRA complaint, according to AdvisorHub.com.

The broker, Andrew Burish, a 38-year industry veteran, recommended shorting Tesla stock, that is, making money on the stock price if it declines. The problem is, during the relevant time period, Tesla stock price went through the roof “triggering more than $23 million in losses for four couples—all members of an extended family—and another investor,” according to an arbitration claim filed with FINRA.

Churning and Burning Investor Accounts by Brokers Is En Vogue in Roiling Covid Stock Market

June 27, 2020 | by Stoltmann Law Offices

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered investment losses at the hands of financial and investment advisers who churned and burned their accounts. One of the most prevalent abuses in the securities industry is excessive trading, or “churning” client accounts. This practice, which is forbidden by industry regulators like FINRA and the SEC, is done to generate commissions, almost always at the expense of the client. As the stock market swings wildly during the Covid-19 pandemic, brokers take advantage by trading their clients’ accounts to generate commissions.

Brokers can open the door to churning by asking customers if they want an “active” trading strategy, which gives brokers discretionary ability to trade at will. Unless clients give specific directions on how and when to trade, brokers may take the opportunity to trade excessively and charge needlessly high commissions.

Churning has been the subject of numerous regulatory actions over several decades. Broker Frank Venturelli, a representative for First Standard in Red Bank, New Jersey, was cited by FINRA for excessive trading between 2016 and 2018. According to FINRA settlement, clients lost more than $373,000 during that period. Venturelli was suspended from the industry for 11 months and ordered to pay partial restitution of $30,000 to his clients.

Options for Recovering Puerto Rico Conservation Trust Fund Secured Notes

May 2, 2017 | by Andrew Stoltmann

We continue to investigate sales practices of brokerage firms who sold Puerto Rico Conservation Trust Fund Secured Notes 5.90% Due April 15, 2034. These notes were originally issued on March 31, 2004. The Puerto Rico Conservation Trust Fund Secured Notes 5.90% carry a B2 rating by Moody’s, which indicates that the notes are speculative in nature, subject to high credit risk and have poor credit quality. Unfortunately, we believe at the time these notes were sold, many clients were informed by their financial advisor that these were appropriate investments for conservative or retired clients who were not looking to speculate. We believe many clients were sold these investments in an unsuitable and inappropriate amounts.

The brokerage firms who we believe were major peddlers of the Puerto Rico Conservation Trust Fund Secured Notes 5.90% include UBS Financial Services, R-G Investments, Corp., Santander Securities Corp.; and Popular Securities. Claims for rescovery include suitability claims, misrepresentation and omissions claims as well as fraud based claims.

Burned investors might be able to recover some, or all, of their losses through the FINRA arbitration process. Either arbitration claims or lawsuits can be used to recoup these losses for clients who match a certain profile on a contingency fee basis. To learn more, please contact our law firm in Chicago, Illinois for a no obligation consultation.

Eric Snyder; UBS; San Juan, Puerto Rico

January 10, 2017 | by Andrew Stoltmann

AdobeStock_35532974-1-300x200 Stoltmann Law Offices is investigating Eric Snyder, who is registered with UBS Financial Services in San Juan, Puerto Rico. He has been registered with this firm since 1982. Snyder has been accused of recommending unsuitable investments, over-concentrating investments, misrepresenting investments, and over-concentrating accounts in unsuitable Puerto Rico closed-end funds. These are all against securities rules and regulations, and UBS can be sued in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis for your losses. The firm has a duty to reasonably supervise its representatives, and if it does not, can be held liable. The call to us at 312-332-4200 is free with no obligation and we take cases on a contingency fee basis only.

According to his online BrokerCheck report, he has been registered with UBS Financial Services in San Juan, Puerto Rico since May 1982 and with UBS Financial Services Incorporated of Puerto Rico in San Juan since February 1991. He has 30 customer disputes against him, 20 of them are pending currently. Many brokers with UBS sold bad, closed-end Puerto Rico bond funds and we have helped many customers recover their losses with these bad investments.

Daniel John Myers; Morgan Stanley

August 23, 2016 | by Andrew Stoltmann

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Daniel John Myers, a Morgan Stanley broker, was fined $10,000 and suspended from association with any FINRA member in any and all capacities for one year. Myers was accused of executing 26 unauthorized transactions in the account of a customer between January 2013 and March 2013. After the customer allegedly complained about the transactions, Myers settled the complaint away from the firm. From November 2012 until April 2013, Myers used an unapproved personal email account to conduct securities business, which is against securities rules and regulations.

Myers was registered with UBS Financial Services in New Haven, Connecticut fro November 2006 until March 2008, Morgan Stanley in New Haven from March 2008 until September 2014 and Wells Fargo Advisors in New Haven from September 2014 until August 2016. He has one customer dispute against him and one criminal disposition. He is not licensed within the industry.

Firms such as Morgan Stanley can be sued in the FINRA arbitration forum on a contingency fee basis to recover investment losses for individuals. We sue firms such as Morgan Stanley for failing to properly supervise their representatives. Please call our securities law firm in Chicago at 312-332-4200 to speak to an attorney about your options. The call to us is free with no obligation. Please call today as there is a statute of limitations on these sorts of cases.

Cary Kievman; Ameriprise Financial

July 12, 2016 | by Andrew Stoltmann

Stoltmann Law Offices is investigating Cary Kievman, a broker with Ameriprise Financial Services. Kievman allegedly put a significant portion of a retired client’s portfolio into short positions in ETNs, leveraged inverse exchange traded products and concentrated positions in individual stocks and individual sectors. These positions were not suitable for the client. Kievman invested her money in a reckless fashion, and put her money into complex financial instruments, unsuitable for retail investors who plan to hold them for longer than one trading session. This was especially true in the highly volatile market. The client told Kievman that she would soon be retiring with a modest fixed income, and could not afford high risk investments. A broker must take into account a customer’s age, net worth, investment sophistication and portfolio before making investments on their behalf. If he does not, his brokerage firm may be liable for losses.

Kievman was registered with UBS Financial Services in Weehawken, New Jersey from January 1999 until September 2005, Citigroup Global Markets in Woodland Hills, California from September 2005 until February 2011 and Morgan Stanley in Woodland Hills from February 2011 until January 2012. He is currently registered with Ameriprise in Westlake Village, California and has been since January 2012. He has four customer disputes against him, one of which is currently pending. Please call our law offices today if you invested money with Cary Kievman.

Stoltmann Law Offices Investigating Wunderlich Securities Broker Bassam Salem

July 6, 2016 | by Andrew Stoltmann

Stoltmann Law Offices is investigating former Wunderlich Securities broker Bassam Salem, relating to alleged misconduct including failure to supervise, unauthorized trading, unsuitability, and breach of fiduciary duty over multiple accounts and damages in excess of $281,000. In another dispute, a customer was granted $92,500 in damages after it was alleged that Salem recommended unsuitable stocks and failed to diversify the customer’s accounts to minimize their risk between June 1, 2007 and June 30, 2008. Wunderlich Securities has a duty to reasonably supervise their registered representatives, and, if the firm does not, can be liable for losses sustained. If you invested money with Bassam Salem, you may be able to recover your losses in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis. We represent investors who have lost money because of brokers with firms such as Wunderlich Securities.

Salem was registered with First Heritage Corp from November 1986 until November 1988, Prudential Securities Inc. in New York, New York from November 1988 until March 1992 and UBS Financial Services in Farmington Hills, MI from March 1992 until January 2011. He is currently registered with Wunderlich Securities in Birmingham, Michigan and has been since January 2011. He has two customer disputes against him, one of which is currently pending.

Investor Complaints Against David Garcia Cirilo

June 16, 2016 | by Andrew Stoltmann

Stoltmann Law Offices is interested in speaking to those investors who may have suffered losses with David Garcia Cirilo, a registered representative with Morgan Stanley in Coral Gables, Florida since 2014. If you or someone you know would like to bring a claim against Morgan Stanley in the Financial Industry Regulatory Authority (FINRA) arbitration forum, we may be able to help you do so on a contingency fee basis. The call to us is free so please call today. 312-332-4200. Attorneys are standing by.

Cirilo was alleged to have made unsuitable investment recommendations, and over-concentrated accounts. He was accused of acting negligently, breaching fiduciary duty, breaching contract, committing fraud, and failed to supervise, among other things. These are all against securities rules and regulations, and brokerage firms may be responsible for these transgressions because the firm has a duty to reasonably supervise its brokers.

Cirilo was registered with UBS Financial Services in San Juan, Puerto Rico from December 1993 until September 2006, UBS Services Inc. in San Juan from September 1994 until September 2006 and Santander Securities in San Juan from September 2006 until April 2014. He is currently registered with Morgan Stanley in Coral Gables, Florida and has been since April 2014. He has seven customer disputes against him, five of which are currently pending.

Update for Investors with Royce Simpson and Oppenheimer

June 6, 2016 | by Andrew Stoltmann

Stoltmann Law Offices continues to investigate Royce O. Simpson, a former stockbroker with Oppenheimer & Co., who has two customer disputes against him. A Financial Industry Regulatory Authority (FINRA) investigation against him resulted in an eight-month suspension for Simpson and a fine of $15,000 to resolve allegations that he loaned money to a gold mining operation in Ghana, Africa. His firm, Oppenheimer, had denied him his request to participate in this outside business activity. The New Mexico Securities Division also instituted a case against him for alleged unsuitable recommendations in long-term U.S. agency bonds. The matter is still pending. A client brought a case against him while he was registered with UBS Financial Services, and alleged damages of $659,458 for overcharges on certain bond transactions.

Simpson was registered with Dover Group, First Ohio Securities, Shearson Lehman Hutton, Rotan Mosle Inc., Painewebber, HSBC Securities, Rodman & Renshaw, Everen Securities, JC Bradford & Co., UBS and Oppenheimer in Houston, Texas from November 2011 until February 2014. He has two customer disputes against him. If you would like to bring a claim against Royce O. Simpson, please call our securities law firm at 312-332-4200 to speak to an attorney. We take cases on a contingency fee basis.

Suing Barbara D. Fife of LPL Financial and John W. Ruggles of City Securities

December 29, 2015 | by Andrew Stoltmann

Stoltmann Law Offices is investigating Barbara D. Fife, a former employee of LPL Financial in Indianapolis, Indiana and John W. Ruggles, a former employee of City Securities, also in Indianapolis. The Financial Industry Regulatory Authority (FINRA) recently barred Fife from the brokerage industry for life, and suspended Ruggles for 14 months and fined him $5,000. Ruggles was accused of falsifying emails and trade reports. Fife was accused by a customer of never investing checks into his or her account which were made out for the purpose of investing.

According to her online FINRA BrokerCheck report, Barbara D. Fife was registered with MML Investors in Springfield, Massachusetts from May 1993 until July 1993, Essex National Securities in Napa, California from July 1993 until March 1996, First Chicago NBD Investment Services in Chicago, Illinois from March 1996 until August 1996, Independent Financial Securities Inc. from September 1996 until January 1997, NatCity Investments in Cleveland, Ohio from August 1996 until February 1997, Banc One Securities Corp in Chicago from February 1999 until April 1999, UBS Financial Services in Weehawken, New Jersey from April 1999 until July 2003, Fifth Third Securities in Cincinnati, Ohio from July 2003 until November 2005, City Securities Corp in Indianapolis, Indiana from November 2005 until July 2007 and LPL Financial in Fishers, Indiana from September 2007 until June 2014. She has five customer disputes against her. She is not licensed and has been permanently barred from the industry.

John W. Ruggles was registered with Raffensperger, Hughes & Co. in Indianapolis, Indiana from July 1993 until July 1995, NatCity Investments in Cleveland, Ohio from July 1995 until March 1997, Independent Financial Securities from January 1997 until March 1997, Charles Schwab & Co. in San Francisco, California from April 1997 until June 2005, Edward Jones in Avon, Indiana from June 2005 until March 2006, Charles Schwab in Indianapolis, Indiana from September 2006 until April 2013 and City Securities Corp in Indianapolis from May 2014 until April 2015. He has one customer dispute against him. He is not currently licensed within the industry.

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