UBS Must Pay $371K to Clients: FINRA Panel

UBS Must Pay $371K to Clients: FINRA Panel

UBS Financial Services must pay nearly $371,000 in compensatory damages, expert witness fees, and other legal costs to a pair of clients who alleged the firm’s Yield Enhancement Strategy (YES) — which focused on options-based trading — was presented to them as low-risk, when it actually exposed them to a significant risk of loss, according to a recent FINRA arbitration award.

In the statement of claim, Matthew V. Fisher and Lisa G. Fisher asserted that UBS was guilty of “negligence, negligent misrepresentation, breach of fiduciary duty, breach of contract, negligent supervision, and violation of the Ohio Securities Act” regarding the YES options strategy.

UBS declined to comment Monday on the matter. Jeffrey B. Kaplan of the law firm Dimond Kaplan & Rothstein, one of the attorneys representing the clients, did not immediately respond to a request for comment.

The amount awarded to the claimants by the three-person arbitration panel was significantly less than the $1.7 million in total requested by the claimants at the arbitration hearing.

The amount requested included about $1,207,509 for punitive damages, as well as $432,670 in compensatory damages. (The claimants first requested compensatory damages of $455,000, pre-judgment interest at the statutory rate, costs and expenses, and punitive damages.)

The arbitration panel instead ruled that UBS must pay the claimants about $342,130 in compensatory damages, $27,875 in costs for expert witness fees, $590 in costs for copies and mailing fees, and $300 in costs as reimbursement for the non-refundable portion of the filing fee previously paid to FINRA Dispute Resolution Services.

Advisor Expungement

UBS’s request for expungement on behalf of UBS advisors Ortal ShacharRichard Mark Held and Frederick Maximilian Kort, who were not named in the claimants’ complaint, were denied.

All three are still registered investment advisors. Shachar and Held are also registered representatives, but Kort no longer is, according to his report on FINRA’s BrokerCheck website.

This was not the first time that a FINRA arbitration panel had resolved a dispute involving the YES options strategy in recent months. Arbitration panels, however, ruled in favor of UBS in some of those cases.

YES Loss Recovery Through FINRA Arbitration

YES investors can file FINRA arbitration claims to recover their losses. FINRA arbitration is private dispute resolution process that generally is cost and time efficient than a court proceeding.

If you lost money in the UBS YES option strategy contact Dimond Kaplan & Rothstein, P.A. DKR represents many YES investors throughout the United States and has extensive experience representing investors who have lost money in risky option strategies. With offices in Miami, Los Angeles, West Palm Beach, and New York, DKR represents investors nationwide and throughout Latin America in brokerage firm misconduct and stockbroker negligence cases.

Speak to a UBS YES Attorney at DKR Today

With offices in MiamiLos AngelesWest Palm BeachNew York, and Naples, DKR represents investors nationwide and throughout Latin America in brokerage firm misconduct and stockbroker negligence cases.

Contact one of our experienced securities lawyers today for a FREE case review to discuss your rights and options. We will fight for your rights!