National investment loss lawyers KlaymanToskes is investigating David Ray Barnes (CRD# 2181896) following the filing of a $3.4M customer complaint alleging that the UBS Financial Services Broker/Advisor recommended an unsuitable portfolio concentration in energy, finance, and real estate investments.
The customer further alleged that Barnes failed to reduce and deleverage risk in their accounts as the complaint relates to a line of credit, MLPs, and preferred stocks. Barnes previously received a separate customer complaint which alleged that he made unsuitable investment recommendations, including loans. The complaint also states that it related to a line of credit and was settled for $98,000.
According to FINRA BrokerCheck, David Ray Barnes is based in Dallas, TX and has been registered as a broker/investment advisor with UBS Financial since 2016. Barnes was previously registered with Credit Suisse Securities from 2009 to 2016.
Investors that suffered losses with David Ray Barnes at UBS Financial may be entitled to a financial recovery. Contact attorney Lawrence L. Klayman, Esq. for a free consultation immediately at 888-997-9956 or lklayman@klaymantoskes.com to discuss your recovery options.
UBS Financial Services has had recent regulatory issues that investors should be aware of. In September 2022, the Securities and Exchange Commission (“SEC”) issued a Cease-and-Desist Order and fined UBS $125 million. The SEC found that UBS registered representatives firm-wide used non-compliant communication methods such as Whatsapp and personal text messaging platforms to communicate broker-dealer information.
UBS also allegedly failed to maintain required records, which violates Section 17(a) of the Exchange Act and Rule 17a-4(b)(4) thereunder. The SEC alleged that UBS’s failure to implement policies and procedures prohibiting such communications led to a lack of reasonable supervision of employees.
Prior to this, UBS agreed to pay $25 million to settle fraud charges with the SEC related to the firm’s options trading strategy, the Yield Enhancement Strategy (“YES”). The YES strategy, marketed to about 600 advisory clients, was sold as having limited correlation to the market and downside protection. However, when the market became volatile in 2018, YES investors suffered severe losses.
According to securities attorney Lawrence L. Klayman, Esq., “UBS Financial’s recent regulatory history which indicates their failure to reasonably supervise its employees and UBS’s widespread failure to implement supervisory policies and procedures. The allegations of misconduct made in the customer complaints brought against David Ray Barnes may further indicate that the firm’s failure to supervise issue are firm-wide.”
Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
Investors that suffered investment losses at UBS Financial Services may have recovery options through FINRA arbitration. Contact KlaymanToskes today at 888-997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss your potential case. We do not collect attorney’s fees unless we make a financial recovery.
Investors that suffered investment losses with Michael Nicholas Vassalotti or any other broker/advisor at UBS Financial Services in West Palm Beach, FL or any other UBS branch, are encouraged to contact attorney Lawrence L. Klayman, Esq. for a free consultation at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options. We do not collect attorneys’ fees unless we obtain a financial recovery for you.
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.
Lawrence L. Klayman, Esq.
888-997-9956