Articles Tagged with UBS

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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