FORT LAUDERDALE, Fla., April 11, 2011 (GLOBE NEWSWIRE) -- The Law Firm of David R. Chase, P.A., headed by a former SEC Prosecutor, alerts those customers of UBS Financial Services who purchased Lehman Brothers 100% Principal Protected Notes (PPNs) that the Financial Industry Regulatory Authority (FINRA) has censured and fined UBS $2.5 million for making statements and omissions that had the effect of misleading certain customers regarding the characteristics and risks of the Lehman 100% Principal Protection Notes.
In its news release, FINRA claimed that UBS:
- failed to emphasize adequately to some investors that the principal protection feature was subject to issuer credit risk,
- failed to establish an adequate supervisory system for the sale of the Lehman-issued PPNs, and failed to provide sufficient training and written supervisory policies and procedures,
- did not adequately analyze the suitability of sales of the PPNs to certain customers, and
- created and used advertising materials that had the effect of misleading some customers about specific characteristics of PPNs.
Brad Bennett, FINRA Executive Vice President and Chief of Enforcement stated: "This matter underscores a firm's need to be clear and comprehensive in disclosing risks of the structured products it sells to retail investors. In cases, UBS' financial advisors did not even understand the complex products they were selling, and as a result, they neglected to disclose necessary information to customers about the issuer's credit risk so investors would understand the magnitude of the potential losses."
While UBS settled the matter with neither admitting nor denying FINRA's allegations, it has agreed to pay restitution of up to $8.25 million limited, however, to only certain classes of its customers.
If you or a family member purchased a Lehman Brothers 100% Principal Protected Note from UBS and wish to discuss your legal rights, please call me directly for a confidential and no obligation consultation at 888-337-8625 (toll free).
My law firm is based in Fort Lauderdale, Florida and represents investors nationwide in cases against the major Wall Street Firms, including cases involving the Lehman Brothers 100% Principal Protection Notes. I have been practicing law for over 18 years, and am AV-Rated by Martindale-Hubbell -- its highest competence and ethics rating -- and previously served as a prosecutor for the SEC. More about my law firm is available at: .
CONTACT: David R. Chase, Esq. Law Office of David R. Chase, P.A. 1700 East Las Olas Boulevard Suite 305 Fort Lauderdale, FL 33301 888-337-8625 (Toll Free) 954-920-7779 Email: email@example.com