SEC Order Requires UBS to Pay Disgorgement and Monetary Penalty Related to Yield Enhancement Strategy (YES)
The U.S. Securities and Exchange Commission (SEC) has announced a nearly $25 million settlement against UBS Financial Services, Inc. in relation to fraud charges. The fraud charges involved the complex options trading strategy referred to as YES or Yield Enhancement Strategy. Investors in the UBS Yield Enhancement Strategy suffered significant losses, many exceeding 20% in a single month.
The national securities and investment fraud law firm Levin Law, P.A. continues to review and investigate claims of losses related to investment in the UBS Yield Enhancement Strategy. Harmed investors are encouraged to contact Levin Law at (855) 862-2306 or email co*****@le********.com to schedule a free case evaluation.
YES Loss Recovery Through FINRA Arbitration
UBS YES investors can file FINRA arbitration claims to recover their losses. FINRA arbitration is a private dispute resolution process for disputes with brokerage firms.
Levin Law managing partner, Brian Levin, has been representing aggrieved investors for over 15 years. Brian Levin has helped recover over $150,000,000 for investors throughout the world and continues to prosecute investment fraud YES for clients throughout the world.
The SEC’s findings against UBS are consistent with the theories that have been successful in customer arbitrations against UBS. Based on discussions with UBS financial advisors, it is apparent that in addition to failing to disclose information about YES to investors, UBS also kept material information about YES from its own brokers. As a result, the firm believes that many UBS brokers did not understand YES.
UBS Agrees to Multi-Million Dollar Settlement After Fraud Charges
The SEC announced the multi-million dollar settlement against UBS Financial Services, Inc. on June 29, 2022. According to a press release, the financial institution agreed to pay approximately $25 million to settle fraud charges related to their Yield Enhancement Strategy (YES).
The SEC Order noted that from February 2016 through February 2017, UBS marketed and sold the complex options trading strategy to around 600 investors nationwide. During this time, UBS failed to adequately train or provide the proper oversight for their representatives. Additionally, the SEC found that despite recognizing and documenting the potential risks involved with YES investments, UBS failed to disclose the information to advisors or clients.
As a result, many investors suffered substantial losses after investing in YES. The strategy was designed to “generate modest returns during periods of low market volatility” but could (and did) lead to significant losses during high market volatility. The SEC noted that UBS knew of the complexities and risks associated with the strategy but did not properly train or supervise its advisors about the potential for losses.
Results of the SEC Order
Per the settlement, UBS was ordered to cease and desist from causing certain securities violations. The company was also censured and ordered to pay disgorgement, prejudgment interest, and a civil monetary penalty.
In total, UBS is required to pay disgorgement of $5.8 million, prejudgment interest of $1.4 million, and a civil monetary penalty of $17.4 million.
Levin Law, P.A. Has Recovered Millions of Dollars for Investors
Levin Law managing partner, Brian Levin, has been representing aggrieved investors for over 15 years. Brian Levin has helped recover over $150,000,000 for investors throughout the world and continues to prosecute investment fraud for clients throughout the world.
Contact Levin Law for a Free Case Evaluation
Did you invest in the UBS Yield Enhancement Strategy or another complex investment strategy that resulted in losses? Contact Levin Law at (855) 862-2306 or email co*****@le********.com for a free case evaluation. All consultations are provided at no charge and without obligation to retain our services.
Most cases are accepted on a contingency-fee basis, meaning that clients are not obligated to pay Levin Law’s attorney fees unless money is recovered on their behalf.
About Levin Law
Levin Law is a premier national securities, commodities, cryptocurrency, futures, and class action law firm. Brian Levin, Levin Law’s founding attorney, has helped recover in excess of $150,000,000 through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.
