UBS’ David Howard Fagenson Allegedly Misrepresented Investments

David Howard Fagenson (CRD#: 1652012, Palm Beach, Florida) is a securities broker who previously worked for UBS Financial Services Inc. between September 3, 2010 and October 19, 2016. UBS Financial Services Inc. reported on Fagenson’s FINRA BrokerCheck Report that a customer of Fagenson’s had made false promises about investments. The customer lodged a dispute about his sales practices.

The customer filed FINRA Arbitration #17-03428 which alleged that Fagenson charged excessive fees in the customer’s Managed Wrap Account between August 15, 2012 and September 27, 2016. Allegedly, Fagenson promised the customer a certain fee rate but failed to abide by that promise. Because of this, the customer demanded $100,000.00 in damages. The FINRA Arbitration is still ongoing.

Customers of UBS Financial Services Inc., Morgan Stanley and Merrill Lynch have alleged that Fagenson was responsible for committing a variety of sales practice violations including unauthorized trading, unsuitable recommendations, and misrepresentation of investment-related information. In fact, FINRA BrokerCheck shows that ten other customers have disputed Fagenson’s sales practices. A summary of the disputes involving Fagenson’s activities has been listed below:

September 26, 2016 Arbitration


A UBS Financial Services customer filed FINRA Arbitration #17-02278 on September 14, 2017. According to the customer, Fagenson traded equities in the customer’s account that were not authorized. He also failed to input stop-loss orders on the customer’s investments when the customer specifically instructed him to do so. All things considered, UBS Financial Services Inc. paid the customer $26,250.00 to settle the claim.

December 28, 2012 Arbitration


A customer of Merrill Lynch filed FINRA Arbitration #12-04248 on December 28, 2012. That customer claimed that Fagenson gave the customer unreasonable advice. The customer also claimed that Fagenson traded in the customer’s investment account without receiving authorization. Additionally, Fagenson allegedly omitted and misrepresented facts regarding closed end funds, which caused the customer to purchase those investments. As a result, on September 30, 2013, Merrill Lynch provided the customer $35,000.00 to settle the matter.

February 10, 2012 Arbitration


A Merrill Lynch customer filed FINRA Arbitration #12-00329 on March 4, 2013. From the customer’s perspective, Fagenson excessively traded investments in the customer’s account. Fagenson was also accused of making unsuitable recommendations to the customer, and misrepresenting the investments that the customer purchased. In addition, the customer alleged that Fagenson engaged in unauthorized trading of securities. That customer agreed to settle the allegations by accepting payment of $112,500.00 from Merrill Lynch.

UBS disaffiliated with Fagenson on September 26, 2016 because he failed to cooperate with the firm’s policies. The firm stated that Fagenson was on heightened supervision at the time of his termination. According to UBS, Fagenson exercised discretion in customer accounts which was not permitted. He also violated the firm’s policies because he engaged in short-term trading of preferred stocks.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Investors who have incurred losses from UBS’ David Howard Fagenson are encouraged to contact Soreide Law Group at (888) 760-6552 for a free consultation. Our firm has recovered millions of dollars for investors who have suffered losses. We represent clients on a contingency fee basis and advance all costs.