Former UBS Financial Services Inc. Client Wins FINRA Arbitration for $805,000 for Losses Due to Negligence and Fraud

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In April 2018, a former client of UBS Financial Services Inc. won an award in a FINRA arbitration for compensatory damages for $805,120 for losses sustained from negligence and other acts of securities fraud. The investors were clients of financial advisor Michael Keane (CRD# 265697).

The causes of action included negligence, negligent misrepresentation, fraud by misrepresentation, fraudulent concealment, respondeat superior, breach of fiduciary duty, unjust enrichment, breach of contract and breach of the duty of good faith and fair dealing. The FINRA arbitration hearing was conducted in New York, New York.

Keane was registered with UBS Financial Services Inc. in Melville, New York from 2007 to 2016. He is currently not registered with any brokerage firm. Keane has been the subject of eight additional customer complaints between 2009 and 2017, three of which were denied, according to his CRD report:

  • October 2017. “February 7, 2011 to September 29, 2017 Client alleges FA disregarded instructions by investing in unsuitable high risk energy stocks and MLPs.” The customer is seeking $300,000 in damages and the case is currently pending.
  • July 2016. “Time Frame: 2013-2016 Claimants allege that their financial advisor recommended unsuitable, high-risk investments and misrepresented the risk associated with these investments.” The client sought $100,000 in damages and the case was settled for $37,500.
  • March 2015. “Time frame: April 2014 – present Claimant alleges FA recommended unsuitable energy stocks.” The customer sought $44,697.89 in damages and the case was settled for $25,000.
  • February 2013. “Time frame: October 2008 – present Claimant alleges FA made unsuitable investment recommendations in risky stocks and over-concentrated the portfolio.” The customer sought $194,400 in damages and the case was settled for $55,000.
  • April 2009. “Time frame: 2007-2008. Claimant allege unsuitable equities investment and failure to implement a stop loss strategy resulted in losses.” The customer sought $1.6 million in damages and the case was settled for $235,000.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, UBS Financial Services Inc. may be liable for investment or other losses suffered by Keane’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.

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Author: Jeffrey Erez

The founder of Erez Law, Jeffrey Erez, focuses exclusively on securities arbitration and litigation. Mr. Erez passionately believes in representing aggrieved investors and obtaining justice for his clients through litigation.