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Articles Tagged with UBS

David Adam Rookasin of Monroe, Connecticut submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in private transactions in violation of FINRA Rules 2320(g)(1) and 2010.

From October 2012 to August 2017, David Adam Rookasin was registered with UBS as a General Securities Representative. According to FINRA, Rookasin recommended that a customer exchange a $1.3 million fixed rate annuity that his firm rejected. The findings stated that upon the rejection, Rookasin helped another representative at a different firm in executing the transaction after the customer opened the account. The findings also stated that he stayed involved in the transactions by being the point of contact between the representative and customer. In addition, Rookasin never notified his firm of this arrangement and received half of the commission in the amount of $50,318.86. Continue Reading

In an arbitration proceeding against UBS Financial Services, Inc. and UBS Financial Services, Inc. of Puerto Rico, the Law Offices of Robert Wayne Pearce, P.A. won $4.25 million in compensatory damages plus interest at 6.25% from February 28, 2014 and costs of $170,000 for one of the firm’s clients last month.

This arbitration arose out of a series of unsuitable recommendations by a UBS-PR and UBS financial advisor that our clients purchase and then hold an excessive concentration of Puerto Rico Bonds and UBS-PR Closed-End Funds.  As a result, our clients’ investment portfolios were not diversified from not only an asset allocation standpoint but also overly concentrated in securities from a single geographic area – Puerto Rico.  The excessive concentration in Puerto Rico securities and leverage strategy implemented made the accounts highly speculative, which was inconsistent with not only our clients’ investment objectives but also the UBS-PR and UBS financial advisor’s representations.  UBS and UBS-PR, through their representatives, disseminated false and misleading information to our clients about the nature, mechanics and risks of owning leveraged and concentrated positions in Puerto Rico Bonds and UBS-PR Closed-End Funds and the investment strategy employed in their accounts. Continue Reading

David Howard Fagenson of Palm Beach Gardens, Florida submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which Fagenson was fined and suspended by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in quantitatively unsuitable trading in the accounts of three seniors.

From September 2010 until October 2016, Fagenson was registered with UBS Financial Services Inc. (UBS) as a General Securities Representative. According to FINRA, between January 2012 and September 2016, Fagenson engaged in excessive and unsuitable trading of the accounts of three customers. FINRA stated that these customers had not proposed any trades and allowed Fagenson de facto control over the accounts. The FINRA findings found that Fagenson’s actions led to major losses in each customer’s account. The account held by one of the customers incurred losses of $283,314, while the other, belonging to the married couple, incurred losses of $239,000. In conclusion, FINRA also stated that Fagenson received $470,000 in commission from these accounts. On March 16, 2018, Respondent Fagenson filed a Chapter 7 bankruptcy petition pursuant to Title 11, United States Code. Accordingly, no monetary sanction is being assessed in this matter. Continue Reading

Michael Hadden, a former broker with UBS Wealth Management (UBS), has made claims that UBS allegedly made it “impossible” for his to continue working due to “… its various unethical practices with respect to customers …” as stated in his original arbitration claim with the Financial Industry Regulatory Authority (FINRA).

Mr. Hadden has asked a federal court, the U.S. District Court for the Western District of Kentucky, to overturn FINRAs arbitration award which ordered him to repay over $300,000 in bonus money, attorneys’ fees and interest. According to Mr. Hadden’s court filings, UBS would allegedly mislabel conservative investors as moderate in order to avoid future restitution and penalties. As Mr. Hadden noted in his court documents, “… the risk reporting system is done … to protect UBS from future claims of lack of suitability from the client or FINRA.”
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