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UBS Financial Services Inc. Broker Michael Dawson Has $2 Million-Plus Customer Complaint for MLP Investment Losses

Posted on Tuesday, July 16th, 2019 at 8:29 pm    

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Erez Law is currently investigating UBS Financial Services Inc. broker Michael Dawson (CRD# 62907) regarding Master Limited Partnerships (MLP) investment losses. Dawson has been registered with UBS Financial Services Inc. in Houston, Texas since December 2015.

MLPs are limited partnerships that are publicly traded and combine the tax benefits of a limited partnership with the liquidity of publicly traded securities. MLPs are offered in two classes: limited partners and general partners. Limited partners are comprised of investors who purchase units in the MLP to provide the capital for the operation and receive income distributions from the MLP’s cash flow. On the other hand, general partners manage the day-to-day operation of the MLP and receive compensation based on the MLP’s performance. Many financial advisors recommended MLPs to elderly and retired investors seeking income during their retirement years and often represented these investments as bond alternatives. They were not. Regrettably, many investors have only learned the true risks associated with MLPs and MLP funds after they sustained massive losses.

Dawson has been the subject of one customer complaint, according to his CRD report:

September 2018. “Time frame: December 2015 – August 2018 as against UBS (overall August 2013- through August 2018 Allegations: Claimant’s Counsel alleges unsuitable investments and misrepresentation of the risks associated with over-concentration in energy sector Master Limited Partnerships.” The customer is seeking $2,617,056.02 in damages and the case is currently pending.

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 Dawson’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.