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FINRA Arbitration Against UBS Financial Services, Inc.

June 4, 2013 In The News

Zamansky LLC has filed a Financial Industry Regulatory Authority (FINRA) arbitration on behalf of a Pennsylvania couple. The couple is alleging that their brokerage firm, UBS Financial Services, Inc., wrongly recommended that they purchase over $50,000 worth of structured products issued by the now-bankrupt Lehman Brothers in their individual retirement accounts. The case is FINRA No. 13-0622.

In this case we allege that UBS sold about $1 billion worth of risky, complex structured notes to thousands of retail customers without disclosing the risks in the event of a default on the part of Lehman Brothers. Many of these customers were conservative investors seeking to preserve their assets in a volatile market. Instead of conservative investments, UBS recommended risky Lehman structured products that generated healthy commissions and substantial underwriting fees for the investment bank.