Category Archives: Regulator Disciplinary Actions

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FINRA Barred Broker for Private Securities Transactions Related to Unregistered Bonds

By | Blog, Broker Misconduct, Featured Investigations, Private Placements, Regulator Disciplinary Actions | No Comments

Released February 2017

 

Thomas Joseph Vilord (CRD #4261608, Sewell, New Jersey) submitted an AWC in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Vilord consented to the sanction and to the entry of findings that he participated in undisclosed private securities transactions involving more than $347,500 in unregistered corporate debenture notes sold to customers of his member firm. The findings stated that Vilord assisted these customers in making the investments by, among other things, preparing transaction paperwork and providing the customers with information about the company issuing the notes. Vilord did not give prior notice, oral or written, to his firm that he would be participating in the offering. The findings also stated that Vilord lacked a reasonable basis to recommend the notes because he failed to conduct adequate due diligence on the offering. Vilord’s knowledge of the company was limited to his conversations with the company’s owner, information contained on the company’s website and Google searches. Although Vilord was familiar with some sources of the company’s revenue, he did not know actual revenue and debt amounts, and failed to review the company’s financial statements. The findings also included that Vilord willfully failed to timely disclose customer complaints related to the sales on his Form U4 and made false statements about one complaint in a Form U4 filing. FINRA found that Vilord provided false statements regarding the same complaint in his written response to FINRA’s request for information and documents concerning the offering and a customer’s complaint. (FINRA Case #2013037385001)

 

Source: FINRA, Financial Industry Regulatory Authority, Inc. 2017
Full Disciplinary Reports Available to the public at: www.finra.org

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Another Investor Lawsuit Filed Over Puerto Rico Bonds

By | FINRA Sales Practice Violations, News, Puerto Rico Bond Funds, Regulator Disciplinary Actions, Securities Arbitration | No Comments
Caribbean News

January 16, 2017
SAN JUAN, Puerto Rico — A securities arbitration law firm on Friday filed a claim against UBS Financial Services Inc. of Puerto Rico and UBS Financial Services, Inc. (collectively “UBS”) for $8.5 million.

According to the claim, the claimant entrusted assets to UBS with the investment objective of capital preservation. However, UBS ultimately concentrated the account in Puerto Rico government bonds (PRGBs) and its proprietary Puerto Rico closed-end bond funds (UBS PR CEBFs), which are leveraged and concentrated in PRGBs.

UBS purchased and held for the claimant PRGBs and UBS PR CEBFs, both of which are closely tied to the performance of Puerto Rico’s economy. The claimant believed the purchases were consistent with their low risk tolerance. However, the over concentration in these PRGBs and UBS PR CEBFs was fraught with excessive risk given the claimant’s investment objective and risk tolerance.

UBS failed to disclose to the claimant the risks associated with over concentrating the account in these securities. Had this information and the true nature of the risk of the recommended allocation been known to the claimant or properly disclosed, he would not have invested his assets in these products.

The law firm representing the claimant, Klayman & Toskes, in conjunction with Carlo Law Offices, is currently investigating, on behalf of their clients, the sales practices of UBS in connection with investment recommendations provided to their customers.

 

The Securities Arbitration Law Firm of Klayman & Toskes, PA Continues to Investigate UBS V10 Enhanced FX Carry Strategy Notes Following UBS Settlement with SEC for $19.5 Million

By | Alternative Investments, Blog, Featured Investigations, MArket-Linked Notes, Regulator Disciplinary Actions, SEC Disciplinary Actions, Securities Concentration, Structured Securities Products | No Comments

Boca Raton, Florida (BUSINESSWIRE) October 14, 2015 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com announced today that it continues to investigate UBS Financial Services (UBS) in connection with the sale of senior unsecured notes, issued by affiliated banks of parent company UBS AG (NYSE: UBS). In response to a Securities Exchange Commission (SEC) Cease and Desist Order, UBS AG submitted an Offer of Settlement which included payment of $19.5 million for violations of securities laws related to the issue and sale of senior unsecured notes linked to the V10 Currency Index. According to the SEC, “The V10 was a proprietary index, developed and sponsored by UBS that measured the performance of a hypothetical algorithmic trading strategy designed to identify and exploit trends in G10 foreign exchange forward rates.”

According to yesterday’s SEC press release, “Between December 2009 and November 2010 approximately 1,900 U.S. investors bought approximately $190 million of structured notes linked to the V10 index.” As a part of the settlement offer, UBS agreed to refrain from similar future violations and pay “disgorgement and prejudgment interest of $11.5 million” and to pay “a civil monetary penalty of $8 million.”

Klayman & Toskes, P.A. is investigating UBS’ sales practices related to senior unsecured notes linked to UBS V10 Currency Index. UBS’ violations of FINRA sales practices may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors. Our investigation relates to investments in UBS senior unsecured notes issued by affiliated banks that are designed to track the UBS V10 Currency Index.

About Klayman & Toskes, P.A.

Klayman & Toskes, P.A. is an experienced, qualified and nationally recognized securities litigation law firm, investigating UBS FINRA sales practice violations related to the sale of its proprietary UBS V10 Currency Index Linked Notes. Investors who have knowledge or experience related to the sales practices of UBS and its financial advisors’ recommended investments in UBS V10 Currency Index Linked Notes, contact Steven D. Toskes, Esq. at 888-997-9956.

 

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