Case Results

SETTLEMENT

Recovered $2.8 million from a major brokerage firm

Recovered $2.8 million from a major brokerage firm for a client who lost money investing in Puerto Rico focused closed-end funds. Erez Law brought claims based upon the unsuitability of the investments, misrepresentations and failure to make adequate disclosures, amongst other things. The case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

CASE NO. 14-00304

Puerto Rico Investors v. UBS Financial Services, Inc. and UBS Financial Services of Puerto Rico, Inc.

Erez Law represented a retired couple that sustained significant losses in UBS proprietary closed-end funds that invested predominantly in Puerto Rico bonds. The couple were customers of Jose “Whopper” Ramirez who has been fired from UBS and has received a Wells Notice from the S.E.C. in which it indicated that it recommended fraud charges be brought against Mr. Ramirez. The Claimants alleged that Mr. Ramirez recommended an over concentrated position in the UBS Puerto Rico funds and that he recommended the illicit use of a non-purpose loan to invest in securities. The FINRA panel awarded the Claimants $2,545,000.

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Case no. 23-01270

Douglas Muhlbauer et al. v Stifel, Nicolaus & Co., Inc.

Erez Law obtained an Award of 2.5M, which included damages under Florida Statutes 517 – the Florida Securities Act as well as attorney’s fees. The claim was based on the sale of structured notes and the management of a non-discretionary managed account. Erez Law obtained critical text message evidence which supported our clients’ claims. Erez Law represents 15 clients of broker Chuck Roberts in 15 separate arbitration cases. The case is notable in that the arbitrators found a violation of the Florida Securities Act and awarded attorney’s fees against Stifel, Nicolaus & Co., Inc.

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SETTLEMENT

$2,500,000 recovery for an investor

$2,500,000 recovery for an investor in structured products.

SETTLEMENT

$2,200,000 recovery for investors

$2,200,000 recovery for investors in collateralized debt obligations.

SETTLEMENT

$2,000,000 recovery for an institutional investor

$2,000,000 recovery for an institutional investor, a hedge fund, against a hedge fund manager, in federal court, alleging breach of fiduciary duty in managing hedge fund investments.

CASE NO. 17-00952

Juan Medero-Fernandez, Individually and as Beneficiary of the Juan Medero Fernandez Retirement Plan and Maria Navedo v. UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico

Erez Law represented an elderly Puerto Rico investor and his wife that sustained significant losses in UBS proprietary closed-end funds that invested predominantly in Puerto Rico bonds as well as losses as in Puerto Rico bonds. The final hearing lasted eight days. David Lugo was the broker for the investors at UBS. The Claimants alleged that Mr. Lugo and UBS recommended an over concentrated and unsuitable position in the UBS Puerto Rico funds and Puerto Rico bonds. The FINRA panel awarded the Claimants $1,880,000. The Award is significant in that the investors’ net out-of-pocket losses were $1.1M and the award is significantly in excess of the net out-of-pocket losses.

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SETTLEMENT

Recovered $1,450,000 for ultra high net worth individual against major brokerage firm

Erez Law recovered $1,450,000 in 2021 for a high net worth investor against a major brokerage firm. The claims were based on misrepresentations and unsuitable recommendation of a proprietary option strategy. Erez Law brought claims for negligence, breach of fiduciary duty and violation of the Florida Securities Act amongst other things. The settlement is notable for percentage of losses recovered for an ultra high net worth individual.

CASE NO. 11-01948

Robert Billings and Michele Billings v. Merrill Lynch, Pierce, Fenner & Smith, Inc.

Erez Law recovered $1,376,463 against Merrill Lynch for investors who invested in Fannie Mae preferred shares. A Merrill Lynch broker recommended Fannie Mae preferred shares to his client in late July 2008 and within 45 days the company was in conservatorship and their investment was virtually wiped out. The award is notable for its size and is believed to be the largest Fannie Mae preferred recovery for any public investors. Merrill Lynch vigorously defended the case, The FINRA arbitration panel that Merrill Lynch breached its fiduciary duties to their clients.

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Jeff Misner and Karen Misner, as Trustees of the Jeff and Karen Misner Revocable Trust v. UBS Financial Services, Inc.

Erez Law represented Jeff and Karen Misner against UBS and recovered $1,342,118. The case stems from the sale by UBS to the Misners of its proprietary YES investment strategy. UBS promoted and marketed YES as a low-risk options overlay strategy that would generate additional income. In fact, YES was a high-risk, directional and aggressive iron condor strategy that failed. The award is significant because the arbitrators awarded the Misners their losses as well as prejudgment interest in the amount of $475,482. The panel also awarded all costs in the amount of $41,475 and attorney’s fees of $325,161. Moreover, the panel awarded punitive damages of $500,000. The venue of the case was Atlanta, Georgia.

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