Articles Tagged with UBS

Stoltmann Law Offices is investigating brokers who have failed to protect customers’ personal information from identity theft. The Securities and Exchange Commission (SEC) has separately charged J.P. Morgan Securities, UBS Financial Services and TradeStation Securities, for “deficiencies in their programs to prevent customer identity theft, in violation of the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.”

 “From at least January 2017 to October 2019, the firms’ identity theft prevention programs did not include reasonable policies and procedures to identify relevant red flags of identity theft in connection with customer accounts or to incorporate those red flags into their programs. In addition, the SEC’s orders find that the firms’ programs did not include reasonable policies and procedures to respond appropriately to detected identity theft red flags, or to ensure that the programs were updated periodically to reflect changes in identity theft risks to customers.”

“Regulation S-ID is designed to help protect investors from the risks of identity theft,” said Carolyn Welshhans, Acting Chief of the SEC Enforcement Division’s Crypto Assets and Cyber Unit. The agency’s actions “are reminders that broker-dealers and investment advisers must design and operate identity theft prevention programs that are appropriately tailored to their businesses and update them in response to the increased threat and changing nature of identity theft.”

Chicago-based Stoltmann Law Offices is representing investors who’ve suffered losses from investing in options strategies that went wrong. Along those lines, an arbitration panel recently ordered UBS to pay more than $1.4 million to a husband and wife who accused the bank of misrepresenting a complex YES options trading strategy that tanked, according to barrons.com.

“Dozens of investors have filed arbitration claims against UBS for alleged misrepresentations in how the strategy was marketed and implemented. A customer has also filed a lawsuit against the company seeking class action status,” Barrons reported. UBS, which has previously denied the allegations, has won some arbitration cases, but lost others.

Approximately 1,500 customers participated in the YES strategy. Assets invested in YES accounts ballooned to $5.7 billion in December 2018, according to the lawsuit seeking class action status. The strategy suffered substantial losses totaling about $1.2 billion, according to the lawsuit.

Chicago-based Stoltmann Law Offices is representing clients who’ve suffered investment losses from advisors who sold fraudulent investments products and offerings. Firms like UBS argue these are frequently, “selling away” claims, suggesting they have no liability for the wrongs of their brokers who go far afield to rip off their clients. The big banks are wrong.

UBS Financial Services is suing Robert Turner, of McGregor, Texas, on fraud allegations and is asking a judge to seize Turner’s assets to help UBS offset the cost of repaying its customers for some $17 million in losses. Turner is a former broker with UBS.

The lawsuit alleges Turner solicited at least 23 UBS customers to buy “purported investments” issued by Fairfax Financial Corporation. UBS claims the products were not authorized by the broker and didn’t know Turner was selling them. Turner, 67, worked at UBS for 25 years before going to work for Stifel, Nicolaus & Co. in October 2021. He has since resigned from Stifel and has lost his license as a financial adviser.

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 AdvisorHub.com.Investors 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.

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