Erez Law recently filed two FINRA arbitration claims on behalf of retired Exxon employees against UBS Financial Services Inc. related to Yield Enhancement Strategy (YES) investment losses, due to recommendations by broker Jack Riley (CRD #4306836), who has been a registered representative of Jack Riley in UBS Financial Services Inc. in Warren, New Jersey, since 2013.
UBS’s YES program is a fee-based investment advisory program whereby UBS Financial Services Inc. manages the assets in the program on a discretionary basis. In other words, clients are not contacted prior to any transactions, nor did they authorize any specific transactions.
UBS Financial Services Inc. and Jack Riley generated fees in connection with the accounts that served as collateral for YES, and also generated a second layer of fees by recommending YES; this generated two revenue streams from the same assets in what may be referred to as double dipping.
Jack Riley allegedly presented YES to his clients as a low risk options overlay invest program that would generate modest additional returns without requiring the client to invest capital directly into the investment. He allegedly represented that YES had a strong and lengthy track record and that it never sustained material losses in a given year.
In 2018, UBS Financial Services Inc. closed YES to new investors and concealed its closure from its clients. It is alleged that UBS Financial Services Inc. knew that YES was a failed investment and concealed the failure of YES from investors.
Erez Law Files Complaint Alleging $500,000 to $1 Million for YES Losses
Erez Law filed a FINRA arbitration against UBS Financial Services Inc., alleging $500,000 to $1 million in losses related to YES investments, UBS’s high-risk and unsuitable proprietary options overlay program.
The Erez Law client is retired and was primarily interested in low-risk fixed income securities and was generally not interested in or in need of high risk or speculative investments.
It is alleged that as YES sustained losses, the client contacted the broker several times to raise their concerns about the mounting losses in YES. The broker recommended that the client stay invested in YES.
According to the claim, the client has losses in excess of $500,000 in YES and have been charged interest by UBS Financial Services Inc. on a margin balance loan caused by YES losses.
This case is far from an isolated incident. UBS Financial Services Inc. and Jack Riley recommended YES to numerous other customers, including the numerous investors who have already filed claims against the firm for losses in YES.
Erez Law Files Complaint for $1 Million to $5 Million For YES Losses
Erez Law recently filed a FINRA arbitration claim against UBS Financial Services Inc. related to allegations that Jack Riley solicited the client to invest in YES.
The Erez Law client is they were retired and generally not interested in or in need of high risk or speculative investments.
It is alleged that as YES sustained losses, the client contacted Jack Riley several times to raise his concerns about the mounting losses in YES. He recommended that the client stay invested in YES and discouraged them from terminating YES. Based upon the Erez Law client’s concerns, Jack Riley recommended lowering the mandate.
According to the claim, the client has losses of between $1 million and $5 million in losses.
Additional Complaints Against Jack Riley
In addition to the cases above, he recently has been the subject of three additional customer complaints, two of which were denied, dating from 2014 to 2023, according to his CRD report. The most recent complaint was regarding:
September 2022. “Time Frame: August 22, 2022 to August 31, 2022 What were the allegations against the individual? Firm settled matter where the client alleges his Financial Advisor failed to follow his instructions to liquidate his securities. The alleged damages are estimated to be in excess of $5,000.00.” The case was settled for $40,510.
How to File a Claim Against Jack Riley
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you 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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