LOST MONEY IN GWG L BONDS? CLICK HERE TO LEARN MORE

Attention Michael Dellinger Investors: Over $4.5 Million in Complaints Filed Against UBS Broker

If you have lost money in the stock market due to fraud, misrepresentation, negligence, or for other reasons, we can help you. We have successfully recovered over $250 million in FINRA securities arbitrations.*

Need Legal Help? Contact Us. Call +1 (888) 997-9956
Updated on: January 25, 2023

Investment Losses at the Advice of Michael Mcrae Dellinger? Contact KlaymanToskes For Recovery Options

National investment fraud lawyers KlaymanToskes is investigating Michael Mcrae Dellinger (CRD#4558550) of UBS Financial Services’ Houston, TX branch after four investor complaints alleged Dellinger caused over $4.5 million in collective damages to customers.

If you have suffered investment losses with Michael Mcrae Dellinger and/or UBS Financial Services’ Houston, TX branch, you are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options.

Over $4.5 Million in Investor Complaints

According to FINRA Brokercheck, Michael Mcrae Dellinger has four investor complaints that requested a total of over $4.5 million in damages. All four complaints are pending.

  1. Investor alleges unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.
    • (Pending – Alleged Damages $1,580,000)
  2. Investor alleges unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.
    • (Pending – Alleged Damages $1,194,000)
  3. Investor alleges unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.
    • (Pending – Alleged Damages $1,300,000)
  4. Investor alleges unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.
    • (Pending – Alleged Damages $500,000)

What All Complaints Have In Common: An “Options Overlay Strategy”

Over the past few years, UBS has come under fire for its Yield Enhancement Strategy (YES) – presented to investors as a conservative options overlay strategy known as an Iron Condor. The Iron Condor strategy trades call and put options on the S&P 500. UBS characterized the strategy as having limited correlation to the market and having downside protection. Instead, the UBS YES program has shown significant correlation to the markets.

The market conditions surrounding the Coronavirus (“COVID-19”) pandemic exacerbated the losses of YES investors. As a result, many investors have pursued recovering losses through FINRA arbitration.

If you suffered investment losses with UBS in their Yield Enhancement Strategy (YES),  contact KlaymanToskes to discuss your recovery options at (888) 997-9956 or on the web at www.klaymantoskes.com.

UBS Pays $25 Million To Settle SEC Fraud Charge

On June 29, 2022, the Securities and Exchange Commission (“SEC”) announced that UBS Financial Services agreed to pay $25 million to settle fraud charges related to their Y.E.S. Strategy. The related Order explains that the charges concern “a complex investment strategy UBS marketed and sold to approximately 600 advisory clients between February 2016 and February 2017 (“Relevant Period”) called the “Yield Enhancement Strategy” (“YES”).” During the time period, an estimated $2 billion in funds were allocated to YES accounts.

Initially, UBS’s financial advisors were not provided with adequate training or supervision related to the strategy. As the market became more volatile in 2018, UBS YES investors began to suffer losses. By the end of 2018, investors saw an 18% loss for the calendar year.

Investors that suffered losses in the UBS YES program may have recovery options through FINRA arbitration. Contact KlaymanToskes today at 888-997-9956 to discuss your potential case.

UBS’ Other Recent Regulatory History

The Securities and Exchange Commission (“SEC”) filed a Cease-and-Desist Order on September 27th, 2022, fining UBS Financial Services $125 million in connection with findings that its registered representatives firm-wide used off-chanel communication methods such as Whatsapp and other personal text messaging platforms to communicate about broker-dealer related information.

According to the SEC Order, “tens of thousands of messages” were sent and received that related to discussions between and among UBS representatives, including information about customer meetings, market analysis, and activity trends. Additionally, UBS failed to maintain required records relating to its broker-dealer business, violating Section 17(a) of the Exchange Act and Rule 17a-4(b)(4) thereunder. The commission states that “UBS’s widespread failure to implement its policies and procedures that prohibit such communications led to its failure to reasonably supervise its employees.”

According to national investment fraud attorney Lawrence L. Klayman, Esq., “UBS Financial Services’ failure to supervise its registered representatives, which allowed them to use off-chanel communication methods in direct violation of federal securities law, may have breached confidential account-related information in thousands of investor accounts.”

How Can I Recover My Losses?

KlaymanToskes encourages investors who did business with Michael Mcrae Dellinger a/k/a Michael Mahae Dellinger and/or UBS Financial Services to review their accounts for investment losses.

Investors that suffered significant losses should contact attorney Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss their recovery options at no cost.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com