Clients Of UBS Indicate Fred Kort Sold Unsuitable, Misrepresented Investments

The Financial Industry Regulatory Authority (“FINRA”) reports troubling allegations of misconduct by securities broker Frederick Maximilian Kort (CRD#: 5376727, Chicago, Illinois). Notably, four investors brought complaints or lawsuits about the securities broker, who worked for UBS Financial Services between August 2007 and May 2018 at which time UBS disaffiliated with Kort for purported forgery in connection with clients’ options agreements. Notably, multiple investors indicate that Kort initiated bad options trades and that he misrepresented risks. Here’s more.

UBS Client Indicates That Fred Kort Placed Her In Unsuitable Securities

Notably, a client of UBS complained about Fred Kort in May 2020. It appears that between May 2017 and September 2019, Kort sold unsuitable investments. It seems that the securities broker did not disclose risks of investing in real estate investment trusts (REITs). Namely, these types of investments are often speculative, aggressive and even illiquid. It seems that the client’s trading experience did not call for Kort’s recommendations. Because of this, the client demanded compensation to resolve this matter. However, UBS denied the complaint.

Kort Allegedly Sells Unsuitable Investments

Evidently, a second UBS client came forward in March 2020 to contest Fred Kort’s sales practices. It seems that from November 2017 to February 2020, the client was invested in bad investments through a managed wrap account or through an in-house money manager. Supposedly, Kort did not explain how investments worked and had instead led the client to believe that his portfolio would not contain as much risk. For this reason, the client demanded compensation from UBS, who denied the complaint.

UBS Client Indicates That Fred Kort Misrepresented Investments

Apparently, UBS Financial Services received notice of a client’s lawsuit about Fred Kort in October 2019. First of all, the client indicated that Kort misrepresented investments. It is possible that Kort lied to the client or had made misleading representations about an options overlay strategy. Secondly, the client suggested that Kort sold unreasonable and inappropriate investments. As a result, the client demands $455,000. Evidently, this claim is pending a resolution.

Kort Supposedly Gives Bad Advice

Also, FINRA BrokerCheck shows that a UBS Financial Services client took legal action over losses from Fred Kort’s options transactions. Namely, in the April 2019 FINRA Arbitration Claim, the client suggested that Kort provided bad investment advice. In addition, an options overlay strategy was supposedly misrepresented to the client which might have caused the client to unintentionally invest. Apparently, for the losses sustained from 2017 to 2019, the client is asking for $343,541.65 in compensation.

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