Broker Brian Donaldson Facing UBS Yield Enhancement Strategy Claims

YES Strategy Investors Suffer Losses, Say Risks Were Misrepresented

Another Financial Industry Regulatory Authority (FINRA) arbitration claim has been filed against UBS Financial for losses sustained in its Yield Enhancement Strategy. The claimants contend that their financial advisors at the broker-dealer unsuitably recommended this iron condor strategy that was misrepresented to them as low risk.

The investors say that they worked with UBS brokers Brian Jay Donaldson and Frank Frederick Baldwin. According to BrokerCheck, this is Baldwin’s first customer dispute and Donaldson’s second. The first one involving Donaldson is also over UBS YES losses with that claimant seeking $600K in damages.

Our UBS YES investment attorneys are pursuing FINRA arbitration cases against investors who suffered losses in this program. Call Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com today) at (800) 259-9010 or contact us via our website.

Couple Wanted Low-Risk Investment: Given A Program Highly Vulnerable to Volatility

In this latest customer dispute involving Donaldson and Franklin, the investors say that they made it clear from the start that they didn’t want to take on much risk when it came to their savings.

Yet, the two UBS brokers went on to recommend that the couple use their securities with the firm as collateral for a credit loan. They also advised the couple to borrow money rather than taking funds out of their accounts. Donaldson then allegedly marketed UBS YES to them as a low-risk strategy in which they could expect to earn modest returns. They say he neglected to tell them about the actual risks.

The investors allege that even after they expressed concerns when their UBS YES investment started to lose money, Donaldson and Baldwin recommended that if they stayed the course they would recoup their investment losses.

UBS Yield Enhancement Strategy is High Risk and Leveraged

Recommended to wealthy customers, UBS YES borrows against clients’ existing holdings to trade options.

While these options should have been traded in a safe manner, UBS brokers instead made large bets on the stock market while misrepresenting to investors that the program wasn’t dependent on the market. UBS YES investors have since suffered devastating losses in the wake of volatile market activity in the last few years.

More than 6,500 UBS brokers promoted and sold this firm’s Yield Enhancement Strategy to customers. Many registered representatives who have been named in UBS YES claims continue to work for the firm, including Brian Donaldson and Frank Baldwin.

Knowledgeable UBS YES Lawyers

This is not the kind of securities fraud case that you want to pursue without seasoned legal help. SSEK Law Firm recently recovered $400K for two investors in their FINRA arbitration case against UBS Financial.

For over 30 years, our FINRA arbitration law firm has pursued the largest broker-dealers on Wall Street on behalf of investors who have suffered losses due to broker misconduct or negligence. If you lost money in UBS YES while working with a UBS broker, call our San Diego lawyers at (619) 550-4847. Elsewhere in the US, call (800) 259-9010 so that we can help you explore your legal options.