Soreide Law Group is evaluating possible claims against UBS on behalf of investors who purchased the UBS Yield Enhancement Strategy (“UBS YES”). Evidently, investors lost money from investing in the program, and investors are suing to recover their investment losses.
UBS Allegedly Erroneously Markets Yield Enhancement Program As Conservative Strategy
UBS's Yield Enhancement Strategy is a purported low risk, conservative iron condor options strategy managed by The YES Group. Apparently, this program aimed to produce attractive yields for wealthy investors’ portfolios. Notably, the company suggested that there was a way to incorporate options – a traditionally risky investment – into a conservative investment strategy. Evidently, this entailed puts and calls purchases and sales on S&P 500. However, in order for investors to generate more income on a seemingly low-risk basis, they had to make a lofty minimum contribution. And this minimum contribution, referred to as a “mandate,” meant millions of dollars for some investors. Also, UBS Yield Enhancement Strategy Group charged investors 1.75% to gain entry into the program. As of approximately December 2018, Yield Enhancement Strategy Group has produced considerable losses for some investors. Apparently, investors sustained losses of twenty percent or more which could amount to billions in losses. To add insult to injury, investors have apparently been directed to put additional funds or collateral into the program. Otherwise, investors risked maintaining margin deficits. As a result, investors began questioning the legitimacy of this supposed low risk investment.
UBS Facing Claims Of Unsuitability And Misrepresentation Because Of YES Strategy Losses
According to lawsuits filed thus far involving Yield Enhancement Strategy Group, the company allegedly misrepresented several aspects of UBS YES, including benefits and risks. Additionally, UBS allegedly made unreasonable and unsuitable recommendations to investors about the program. For example, the program was vulnerable to market volatility as is typically the case with investments. However, investors may not have known that this volatility would cause serious losses for them. It is possible that UBS failed to tell investors about risks, and put investors in the program when this was unfitting or too risky for the customers.
Soreide Law Group is investigating potential investor claims of sales practice violations possibly committed by securities broker Al Stephen Lovelace [CRD: 2393766, Rutherfordton, North Carolina], given the disclosures on FINRA BrokerCheck. Evidently, Lovelace has worked for Equitable Advisors LLC since December 27, 2016, and worked previously at AXA Advisors LLC from October 2, 2008, to […]
Soreide Law Group is conducting an investigation into WESTERN INTERNATIONAL SECURITIES, INC. of Pasadena, California, financial advisor, KAREN TRAN CHUNG (KAREN CHUNG). According to FINRA’s BrokerCheck, KAREN CHUNG, has been in the securities industry for 20 years and has been listed with 4 firms. She is currently listed with, WESTERN INTERNATIONAL SECURITIES, INC., 70 S. […]
According to a recent article in Wealth Management, Stifel will pay over $400,000 to settle FINRA disciplinary charges that the firm allegedly did not properly supervise one of their registered representatives who misappropriated over $100,000 from an elderly client. Stifel agreed to the penalties without admitting or denying FINRA’s findings. In addition to a $400,000 penalty, Stifel […]
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