Articles Tagged with UBS

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered investment losses as a result of negligence, breach of fiduciary duty, and other violations by UBS Financial Services and its financial advisors.

Recently, FINRA, the U.S. securities industry regulator,  ordered UBS to pay more than $800,000 to two couples who had lost money in the company’s YES strategy, according to Robert and Marcia Shinbrot recovered their full $269,337.09 loss plus prejudgment interest of $45,009.80 while Nicholas and Brigit Trentalange recovered their full $421,868.58 loss plus prejudgment interest of $70,499.93, according to the FINRA award.

Robert Shinbrot and Nicholas Trentalange were business partners in ForwardThink Group, a company acquired for $46 million by tech consulting firm Perficient in 2014. A separate FINRA panel awarded Houston investor Daniel Ferber the full $358,000 in damages he had sought, but denied his requests for interest and fees and costs.

AdobeStock_77502568-1-300x199Former UBS broker John MacColl was charged with defrauding more than 15 retail investors in a $4 million scheme. He used high-pressure sales tactics that targeted mostly elderly retirees, according to a complaint filed with the Securities and Exchange Commission (SEC) in federal court in Michigan. He persuaded clients to invest in a “highly-sought-after” private fund that would diversify their portfolios and provide investment returns as high as 20%, exceeding the returns they would receive with investments at UBS. Between 2008 and 2018, MacColl told investors to sell or take a line of credit out against the securities in their accounts and to deposit the money into their personal bank accounts, according to the complaint. He then told them to make checks payable to “Mac 011” or “Mac01”. He then added his name to the payee line and deposited the checks into his own account. Other criminal charges were filed in a federal court in Michigan this week. One victim invested her life savings and money from her deceased husband’s life insurance payout, which she was going to use to pay for college for her three children. MacCall spent the money on personal expenses, and about $410,000 was used to pay back other investors in a ponzi-scheme fashion.

AdobeStock_194438920-300x200According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Westport Capital Markets broker Emil Skyba violated securities laws. Skyba was barred from the industry because he failed to respond to an investigation against him. This results in an automatic bar. According to his online, FINRA BrokerCheck report, Emil Skyba was previously registered with Paine, Webber, Jackson & Curtis, Hornblower & Weeks, Shearson Hayden Stone, Lehman Brothers, UBS, and Westport Capital Markets in Westport, Connecticut from February 2015 until September 2017. He has four customer disputes against him and one regulatory matter. They allege unsuitable investments, unsuitable trading, excessive margin trading, misrepresentation, and other things. He is not currently registered as a broker. Please call our Chicago-based securities law firm today to find out how you may be able to sue Westport Capital Markets on a contingency fee basis for Emil Skyba losses.

AdobeStock_1800313-1-300x204According to AdvisorHub online, former UBS broker Kenneth Tyrrell has been ordered to pay back UBS the balance on his hiring-bonus “loan” plus interest, and UBS’ legal bill. He owes UBS $262,773 on his loan and $9,000 in costs and lawyer fees, according to an award decision published Tuesday that affirmed UBS’ claim of breach of promissory note and unjust enrichment. Tyrrell was discharged from UBS in 2016 after being with the firm for seven years, after he was accused of undisclosed private securities transactions, outside business activities and compliance certifications. FINRA threw him out of the securities industry in December, citing 11 private securities transactions and his role as a business advisor to trusts and charities associated with a client, believed to be pitcher Justin Verlander. These are all against securities laws and internal firm rules. A broker participates in outside business activities so he does not have to share those commissions he receives with his firm. This is sometimes referred to as “selling away.” Tyrrell’s former firm, UBS, may be liable for losses on a contingency fee basis. Please call today to find out how you may be able to bring a claim against the firm. Attorneys are standing by.
According to FINRA records online, Kenneth Tyrrell was previously registered with Washington Square Securities, Merrill Lynch, First Union Brokerage Services, Wachovia Securities, UBS in Vienna, Virginia from November 2008 until September 2016, and Cary Street Partners in Richmond, Virginia from August 2016 until October 2017. He has two customer disputes against him alleging unsuitable investments and unauthorized trades, and one regulatory matter. He has been permanently barred from the industry.

AdobeStock_78306447-1-300x199The Financial Industry Regulatory Authority (FINRA) ordered LPL to make a “very substantial” payment for the firings of an office of supervisory jurisdiction (OSJ) manager and a compliance delegate. The individuals brought a $20 million claim against the firm. Brandon Marinelli and Meagan Donahue also won expungement of their records that occurred on February 16th, without LPL disclosing the exact amount. Another OSJ manager in October was seeking $30 million from the firm, which LPL did not have to pay. In the same month, a former UBS advisor who was terminated from the firm won $3 million in connection with his defamation claim. Marinelli and Donahue’s former practice, Northstar Wealth Partners, remains affiliated with LPL, and both argued that they were wrongfully terminated in March 2016.
An arbitrator wrote: “The record (including LPL’s internal documents) are remarkable in the lack of credible evidence showing wrongdoing by Donahue. It appears that Marinelli’s actions were consistent with his obligations and in the few ambiguous instances explicitly approved by LPL. At a minimum, LPL did not appear to engaged with Marinelli to examine in good faith Marinelli’s actions in regard to the events causing concern.” The firm asserted that Marinelli and Donahue failed to detect or report problematic annuity transactions by a representative under their supervision. Donahue claimed and testified, however, that the firm reviewed the transactions and found them acceptable after discussing them with the clients. Evidence produced in the case also showed that LPL had itself found that two loans by Marinelli to a representative were not violations of its policies and approved a representative’s holdings of certain penny stocks. The panel concluded that LPL fired the two individuals “at least in part” in order “to impede Marinelli and his business partner from moving Northstar’s book of business elsewhere.”
According to public records with FINRA, Marinelli is now registered with Raymond James in West Hartford, Connecticut, and has been since May 2016. He was previously registered with LPL in West Hartford from October 2008 until April 2016. Meagan Donahue was previously registered with LPL in West Hartford from June 2014 until April 2016, and is not currently registered with any member firm.

AdobeStock_99700100-2-300x200A top Morgan Stanley broker in California, Brett Grimes, was ordered to pay UBS broker Michael Sexton $300,000 in compensatory damages (plus 10% annual interest until the damages are paid in full), and also $100,000 in civil punitive damages. The three-person, Financial Industry Regulatory Authority (FINRA) arbitration panel also decided to permanently enjoin and restrain Grimes from making any false and disparaging comments, written or verbal, of any kind regarding Sexton and his family, after Sexton claimed that Grimes, his former partner, along with Morgan Stanley, “interfered with his business and economic relations, libeled him, intentionally inflicted emotional distress on him and his family, and besmirched his reputation.” The two previously worked together at UBS in Santa Barbara, California between 1990 and 2008. Sexton settled his claim of vicarious liability against Morgan Stanley in November.

AdobeStock_90383187-1-300x194Did your broker recommend to you General Electric (GE) stock or structured products benchmarked to general electric? If so the investment losses you sustained might be recoverable through the FINRA arbitration process. Brokers have an obligation to perform reasonable due diligence on securities before they are recommended for clients. Unfortunately many brokers at firms like Merrill Lynch, Morgan Stanley, Raymond James, UBS, recommended structured products benchmark to General Electric stock and the results have been cataclysmic for Investors. Investments must also be suitable and appropriate for clients based off of their age, income, net worth, and actual investment objectives. If your broker recommended general electric shares or GE related structured products please call out law firm in Chicago Illinois at 312-332-4200.

AdobeStock_33766885-1-300x200A financial advisor from Sayreville, New Jersey was sentenced to three years in prison for stealing a factory worker’s pension that he was supposed to invest. The U.S. Attorney for the District of New York announced on Wednesday that Jesse Holovacko allegedly defrauded his client out of his retirement savings and used the funds for his own benefit. He was convicted on six counts of wire fraud and one count of investment advisor fraud. According to the U.S. Attorney, Holovacko met with factory workers in 2012 and transferred the victim’s pension savings into an IRA. The victim had entrusted Holovacko with managing his retirement savings from December 2013 through August 2014. Holovacko then allegedly falsely told the victim that he would use the retirement account funds to purchase bonds for him and advised the victim to transfer the retirement money to the victim’s bank account and then provide cashier’s checks made out directly to the financial advisor, telling the victim it would be easier to purchase the bonds. Holovacko obtained 18 cashier’s checks totaling $225,000 because of this. He then used the money to pay a car loan, mortgage, dinners out, concerts, baseball game tickets and took out $150,000 in cash. Holovacko also promised the victim documentation of the purported investments in bonds. These were all against securities laws and regulations.
Jesse Holovacko, according to public record with the Financial Industry Regulatory Authority (FINRA), was previously registered with UBS in Edison, New Jersey from September 2006 until November 2011, and Merrill Lynch in Edison from November 2011 until September 2014. He has nine customer disputes against him, one of which is currently pending. He has one criminal disposition against him. He has been permanently barred from the industry.
If you or someone you know suffered money losses with Mr. Holovacko, please call our securities law firm in Chicago at 312-332-4200 today to speak to one of our attorneys. The call is free with no obligation, and attorneys are standing by. We sue firms in the FINRA arbitration forum for not reasonably supervising their brokers while they were registered there. We are based in Chicago and Barrington, Illinois. We only make money if you recover yours.

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Kenneth Tyrell violated securities laws. Mr. Tyrrell was accused of participating in 11 undisclosed private securities transactions with a customer in violation of FINRA rules. He also allegedly engaged in five undisclosed outside business activities, all of which involved the same customer. This was in violation of FINRA rules. In May 2011, Tyrrell allegedly participated in 11 private securities transactions totaling more than $13 million with his customer without providing prior written notice to his firm, UBS. This resulted in his being barred from the industry by FINRA.

According to FINRA records, Kenneth Tyrrell was previously registered with Washington Square Securities in Des Moines, Iowa from March 1994 until March 1995, Merrill Lynch in New York, New York from March 1995 until August 1999, First Union Brokerage Services in Charlotte, North Carolina from August 1999 until October 2000, Wachovia Securities in St. Louis, Missouri from October 2000 until November 2004, Merrill Lynch in Alexandria, Virginia from October 2004 until November 2008, UBS in Vienna, Virginia from November 2008 until September 2016 and Cary Street Partners in Richmond, Virginia from August 2016 until October 2017. He has two customer disputes against him and is not currently registered as a broker.

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), former UBS broker James Carlson allegedly violated securities laws. Between October 2014 and June 2015, Carlson allegedly executed 39 discretionary transactions in the accounts of 13 customers. He had not obtained prior written authorization from the customers to exercise discretion in their accounts, and UBS had not accepted the customer accounts as discretionary accounts. UBS prohibits discretionary trading in non-discretionary accounts. For this, Carlson was suspended from the industry for 15 days and fined $5,000. James Carlson was previously registered with Morgan Stanley in Greensboro, North Carolina from October 2000 until April 2007, Morgan Stanley in Greensboro from April 2007 until June 2009 and Morgan Stanley in Greensboro from June 2009 until February 2011. He is currently registered with UBS in Greensboro, and has been since February 2011.

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