Douglas F. Stone Investments Law Blog on Lawyers.com

The New Hampshire Bureau of Securities Regulation filed a Cease and Desist order against UBS in June for unfair sales practices and unsatisfactory supervisory procedures and for recommending unsuitable investments.  The action relates to products underwritten by Lehman Brothers and sold to the public by UBS.   

The products are complicated investment vehicles, known as “structured products”, many of which were sold with promises of principal protection.  These notes are connected to complex derivatives that are linked to various investments, such as foreign currencies.  The securities were sold to investors with the understanding that Lehman Brothers would guarantee the principal invested. However, because Lehman declared bankruptcy in September 2008, investors who hold these notes may lose most if not all of their principal.  

New Hampshire’s Deputy Director of Securities Regulation for Enforcement stated: “UBS presented these notes as simple, safe investments when in fact they are highly volatile and are subject to shifting market conditions. The safety of these products was exaggerated.  We believe UBS engaged in unfair and unlawful sales practices when presenting these investments.”

New Hampshire’s Director of Securities Regulation said “The Bureau believes UBS sold these products to New Hampshire investors without adequately explaining the potential for loss.  UBS also failed to alert customers as to the declining financial condition of Lehman Brothers, which would affect the principal protection on the investment.”

Investors have filed FINRA securities arbitration claims against UBS, Citigroup and Charles Schwab in connection with sales of Lehman Principal Protection Notes.

If you believe you have a claim for losses from Lehman Principal Protected Notes, contact Westchester & NYC securities attorney Douglas Stone by phone at 866 720-3754 or 914 636-2648 or e-mail at dstone@dougstonelaw.com. Mr. Stone is a securities arbitration attorney with over 15 years of experience and serves as a FINRA Arbitrator.  Before he opened his law firm, he worked at Morgan Stanley and Smith Barney where he handled thousands of investor disputes.  If you need more information about Westchester securities arbitration law, NYC securities arbitration law, Westchester investor disputes law and Westchester securities litigation law contact the Law Office of Douglas Stone.