(PRWEB) September 16, 2013
Zamansky LLC investigates former UBS financial advisor Christine Cote of the Seattle, Washington branch office, for alleged sales of Lehman Structured Notes and the UBS Willow Fund LLC ("Willow Fund") to her brokerage customers. A FINRA arbitration was filed by her brokerage customers against UBS Financial Services Inc. ("UBS") who were sold Lehman Brothers' structured products including "100% Principal Protected Notes," and the Willow Fund. The case is FINRA No. 11-3530.
The Statement of Claim alleges that UBS sold its brokerage customers structured notes issued by the now-defunct Lehman Brothers Inc. The Statement of Claim asserts that UBS knew but hid its true views of Lehman’s deteriorating financial condition from its retail customers who were invested in these notes. The Statement of Claim alleges that UBS’s brokerage customers never knew that there was real possibility that these Lehman notes could default and become worthless. The Statement of Claim also alleges that UBS twice halted sales of Lehman notes in response to concerns about credit risk, but failed to disclose those halts to its thousands of retail customers who already held Lehman notes in their accounts.
According to stock fraud attorney, Jake Zamansky, these UBS brokerage customers decided to opt out of the recent class action settlement that was announced so that they could pursue their own claims. On August 9, 2013, a preliminary settlement was filed in the investor class action for these Lehman structured products. The case is In re Lehman Brothers Debt/Equity Sec. Lit., U.S. District Court, Southern District of New York, 2008-CV-05523.
Under the proposed settlement, Zamansky states that investors receive recovery of only a small percentage of their losses. Investors have the right to opt out and pursue a larger recovery through arbitration, Zamansky states. Any investor who wishes to discuss whether they should opt out of the settlement to pursue their own case should contact our firm, he says.
Zamansky LLC successfully represented former president of the Philadelphia 76ers Pat Croce. As reported by Reuters, on June 13, 2011, an arbitration panel found UBS liable for $2 million in damages plus interest. The case was FINRA No. 2010-00361.
The Statement of Claim in the arbitration also alleges that UBS sold these customers the Willow Fund which marketed and sold as a purported distressed debt fund. The Statement of Claim alleges that in 2008, the UBS Willow Fund materially deviated from its disclosed strategy of investing in distressed debt, and instead speculated in foreign sovereign debt credit default swaps (CDS). The Statement of Claim alleges that these foreign sovereign CDS carried risks that were far greater in magnitude and different in nature than those disclosed to investors. The Statement of Claim also alleges that investors were never made aware of the change in fundamental strategy, and that these CDS eventually sank the UBS Willow Fund.
The problems associated with the UBS Willow Fund are discussed in a March 30, 2013 article entitled A Fund Turns On A Dime, Watch Your Dollars," by Gretchen Morgenson, New York Times.
According to stock fraud attorney Jacob Zamansky, "investors in hedge funds should monitor their investments for possible style drift by the fund manager." "Style drift can violate the terms of a hedge fund's offering memorandum or mislead investors if it is not disclosed," Zamansky states. Zamansky believes that any investor in a hedge fund with a loss that does not make sense to him or her should have the fund reviewed by a professional.
What Investors Can Do
If you were a UBS brokerage customer who allegedly suffered a loss from a Lehman structured product, and would like to discuss whether you should opt out and pursue your own arbitration, or you invested in the Willow Fund, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is a leading investment fraud law firm specializing in securities arbitration and securities class actions. Our stock fraud attorneys represent both individual and institutional investors. Our stockbroker fraud practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414