Former UBS Financial Services, Inc. Broker Indicted And Sued By The SEC

Share Article

The Law Offices Of Jeffrey A. Feldman Represents Twelve Clients In Three FINRA Arbitration Claims Against UBS Financial Services, Inc. Relating To The Actions Of Former Broker Steven Kobayashi Who Was Sued Last Week By The United States Securities And Exchange Commission And Against Whom Criminal Charges Were Also Filed By The Northern California U.S. Attorney’s Office.

The Law Offices of Jeffrey A. Feldman currently represents twelve individual clients with FINRA arbitration claims against UBS Financial Services, Inc. relating to the alleged civil and criminal actions of its former broker, Steven Kobayashi. On March 3, 2011, Mr. Kobayashi was charged by the U.S. Attorney’s Office in Northern California with wire fraud and money laundering with respect to Mr. Kobayashi’s UBS clients. (U.S. District Court Northern District of California Case No. CR 11-106 CW) Steven Kobayashi worked for the Walnut Creek, CA office of UBS Financial Services, Inc. from October 2004 through September 2009. (link to U.S. DOJ press release)

Also on March 3, 2011, the United States Securities and Exchange Commission charged Steven Kobayashi with a scheme to misappropriate 3.3 million dollars that included bilking investors in a private placement he established. (U.S. District Court Northern District of California, Oakland Division Case No. CV 11-0981) Mr. Kobayashi has apparently already settled with the SEC. (link to SEC press release)

The twelve clients that the Law Offices of Jeffrey A. Feldman represent have all brought FINRA Arbitration proceedings against UBS, containing allegations that they suffered injuries at the hands of Steven Kobayashi while he worked at UBS, according to Mr. Feldman. All twelve clients of Mr. Feldman lost significant amounts of money in their accounts at UBS, with some clients allegedly having had millions of dollars stolen right out of their accounts by this UBS agent according to statements of claim filed with FINRA. Also alleged in FINRA statements of claim, Mr. Kobayashi sold away from the firm, allegedly directing Mr. Feldman’s clients to invest in investments outside of UBS, which in almost each instance caused the clients to lose all of their principal. With the funds that were left in the client accounts at UBS, Kobayashi often concentrated those funds into just a handful of securities in the financial sector, causing substantial additional losses, according to the statements of claim filed with FINRA.

In their FINRA arbitration claims filed against UBS, Mr. Feldman’s clients have alleged that UBS is responsible for Mr. Kobayashi’s actions. It is alleged that UBS failed to supervise Mr. Kobayashi, as it is required to do by the securities laws and regulations of the United States, the State of California as well as self-regulatory organizations that regulate brokerage firms, according to the statements of claim filed with FINRA.

“There were so many red flags that UBS missed regarding Kobayashi’s conduct while employed with UBS, that you would think that UBS would be rushing to settle these claims that have been brought by Kobayashi’s victims,” said Mr. Feldman. Mr. Feldman went on to say that “UBS is attempting to make Kobayashi’s clients out to have somehow been responsible for the wrongdoing perpetrated on them, and UBS should be ashamed of itself.” The Law Offices of Jeffrey A. Feldman practices in the area of claims against stock brokers. More information about the Law Offices of Jeffrey A. Feldman can be found at

While Mr. Feldman’s clients were pleased to see that the federal government has finally pursued claims against Steven Kobayashi for the wrongs they say he committed, they continue to regret UBS’s failure to act in a way that will make things right for them. “Investors count on brokerage firms to supervise their brokers, and ensure appropriate conduct, but UBS clearly has failed to live up to the standards expected and required of it,” said Mr. Feldman. The Law Offices of Jeffrey A. Feldman will continue to vigorously prosecute the FINRA Arbitrations against UBS until their clients are made whole. (FINRA Arbitration Case numbers: 09-07156; 10-03566; 10-00296)


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Jeffrey Feldman

(415) 391-5555
Email >