Attorney Jake Zamansky Quoted in the Wall Street Journal Discussing Risks of UBS’ YES Investment Strategy

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Jake Zamansky, founding attorney of national securities fraud law firm Zamansky LLC, was recently quoted in the Wall Street Journal discussing UBS’ yield enhancement strategy (YES) and its risks for individual investors. Zamansky is currently representing more than 60 investors in YES arbitration cases against UBS and other investment firms.

Jake Zamansky is currently representing more than 60 YES investors in arbitration claims against UBS and other investment firms.

Jake Zamansky, founding attorney of national securities fraud law firm Zamansky LLC, was quoted today in a Wall Street Journal article written by Jason Zweig discussing the risks associated with investment firm UBS’ yield enhancement strategy (YES) offered to wealthy investors. Zamansky has been quoted by the Wall Street Journal previously, and he is widely recognized as a leading attorney in the area of securities fraud litigation and arbitration on behalf of aggrieved investors.

As Zweig explains in the article, “YES . . . effectively borrows against clients’ holdings at UBS and uses the proceeds to trade options. The product is akin to a margin loan against existing holdings; losses could compel an investor to put in extra cash or securities.” This presents a significant risk for investors – a risk that Zamansky says was not disclosed in UBS’ sales presentations or marketing materials. Zweig also reports that UBS charged investors up to 1.75% in annual fees on the full amount of YES borrowings even if only a portion of these borrowings were actually used.

In the article, Zamansky is quoted as stating that UBS’ “clients were all told . . . that the product was hedged and protection was in place to minimize losses. They were told it was a conservative strategy with a consistent 3% to 4% upside, when in fact it had huge downside risk.” Zweig also quotes a YES investor who states that UBS made the strategy seem “foolproof,” and that he “would have run for the door” had he received accurate information about the risks involved.

Zamansky is currently representing more than 60 YES investors in arbitration claims against UBS and other investment firms. He noted that these claims are filed with the Financial Industry Regulatory Authority (FINRA), and they afford aggrieved investors the opportunity to recover their losses without the need to litigate in federal district court. Large investment firms like UBS are required to submit to arbitration for investor claims, and FINRA arbitration affords investors a level playing field on which they can secure legal remedies for misstatements, omissions and other forms of investor fraud.

About Jake Zamansky

Jake Zamansky is the founding attorney of Zamansky LLC, a leading investment fraud law firm with significant experience in securities, hedge fund, ERISA and other types of investor and shareholder arbitration and litigation. The firm’s investment fraud attorneys represent individual and institutional investors in FINRA arbitration and federal district court litigation across the country. The firm is nationally recognized for its ability to aggressively pursue cases against large investment firms on behalf of aggrieved investors and recover their investment losses.

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