UBS LOSES AGAIN TO THE LAW OFFICES OF ROBERT WAYNE PEARCE
It appears that UBS and its attorneys have not learned the lessons taught by the investment fraud lawyers at the Law Offices of Robert Wayne Pearce.
In the last three arbitrations, Mr. Pearce obtained awards of $5,887,498, $552,000, and $764,000 for his clients. In each case, UBS failed to offer any settlement and refused to attend a mediation to try and settle the dispute. A brief description of each case follows:
FINRA Arbitration Award $5,887,498
Jose E. Blanco Garrido, et al. v. UBS Financial Services Inc. of PR, et al.
This FINRA arbitration against UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico involve the overconcentration of Mr. Blanco’s family’s assets in Puerto Rico municipal bonds and closed-end bond funds. The arbitrators awarded substantially all of the Blanco family losses and over $1.5 million prejudgment interest and all of the litigation expenses, $175,000, arising out of an unsuitable recommendation to “hold” their Puerto Rico securities when market conditions were perilous. The arbitration award was entered in favor of the Blanco family after 40 hearing sessions.
FINRA Arbitration Award $552,000
Pamela Joy Borders, Individually and Trustee v. UBS Financial Services, Inc.
This FINRA arbitration involved a Texas resident who claimed her financial advisor at UBS Financial Services, Inc. made unsuitable “hold” recommendations, misrepresented and fully failed to disclose the risk of a highly leveraged account concentrated in the oil and gas sector. The account was overconcentrated and overleveraged and vulnerable to massive liquidations of securities to meet margin calls at fire sale prices. This arbitration resulted in an arbitration award of not only compensatory damages, but attorney fees and interest.
FINRA Arbitration Award $764,000
Sean Barni v. UBS Financial Services, Inc.
In this FINRA arbitration, an ex-Tesla employee holding a concentration of Tesla stock and employment options hired UBS investment advisors to manage his portfolio and protect the concentrated Tesla position from losses while it was being sold in a tax efficient manner. Despite the UBS employee’s awareness of the fact a zero-cost equity option collar could have been successfully executed on multiple occasions to accomplish that financial objective, they failed to execute and implement the collar. The arbitrators made a full award of all damages with interest accruing at 10% from the date the advisors were specifically instructed by Mr. Barni to execute the collar plus all attorney fees and all costs requested.
How Can You Tell If a Zero-Cost Collar Was Actually Implemented on Your Concentrated Stock Position?
You can tell if a zero-cost collar was actually implemented on your concentrated stock position by confirming your records show two linked options trades—a long put and a short call—with matching share quantities and the same expiration, because the collar only exists when both legs are executed.
A zero-cost collar is a hedging strategy where the put equals a downside floor and the call equals an upside cap, so the account’s objective (risk-limiting protection) must match the trades placed, the timing, and the investor’s written instructions. At the Law Offices of Robert Wayne Pearce, P.A., our investment fraud lawyers review whether the advisor’s actions (trades) matched the client’s directive (instruction) and whether the firm’s supervision (oversight) aligned with the stated plan.
Key evidence includes emails or portal messages directing execution, order tickets, trade confirmations, options position statements, and notes showing concentration risk, tax constraints, and any “hold/sell” schedule. If those documents show the hedge was discussed but never placed, that gap can be the factual core of a FINRA arbitration claim for failure to follow instructions, unsuitable strategy handling, or negligent portfolio management.
Did You Lose Money Because of UBS Financial Services?
If you have lost money due to negligence or fraud by a stockbroker or advisor, the easiest way to know if you have a case is to call our office at 800-732-2889. Our investment fraud attorneys will evaluate your claim for free and let you know if we can help you recover your losses.
Need Legal Help? Let’s talk.or, give us a ring at 833-300-6983.
