Client Spotlight: Securities Fraud Lawyer Investigation Recovers Millions Lost for UBS YES Strategy Investors
By PaperStreet on April 29, 2021 in PaperStreet
At PaperStreet, we work with lawyers and legal professionals all around the country, and many of them are doing cool things for the communities where they live and work. From time to time we feature our clients (we like to call them “difference makers”), and today we’re highlighting
Zamansky, LLC, a securities fraud law firm and long-time PaperStreet client.
The Investigation Started in 2018
Several years ago, UBS yield enhancement strategy securities fraud lawyer Jake Zamansky and his team started investigating several large investment firms, including UBS Financial Services, Merrill Lynch, and others who offered yield enhancement strategies (YES) in various forms or products (i.e., structured notes, managed accounts, funds, etc.). We all know that investments of any kind typically come with risks. However, the UBS YES strategy was being peddled as a “safe and stable” return strategy for investors. 
What many investors didn’t realize is that such strategies need various options/derivatives to produce the yield. This, in turn, can involve a huge risk of volatility or loss if the market decides to go in the opposite direction. And as time passed, the market did just that.
How Zamansky, LLC Advocates for Investors Who Lost Millions
In 2019, Zamansky saw that lawsuits against UBS and other investment firms were gaining momentum, as their firm had picked up numerous clients who were trying to rectify their significant losses by filing arbitration claims regarding their failed UBS YES strategy investments. And the calls kept coming throughout 2019 and 2020 — people were upset, and we don’t blame them.
The Wall Street Journal quoted Jake, who commented about the significant losses he saw with his clients and others due to the UBS yield enhancement strategy. In part, he said that “disheartened individuals were assured of safety with YES investments, but faced harsh consequences.” And undoubtedly, we all (even non-investors) witnessed what happened in early 2020. The combination of existing losses, along with another major stock crash in 2020 stemming from the pandemic, was a recipe for disaster — one that UBS and other firms didn’t account for and investors surely didn’t bank on.
While the market did eventually bounce back, there was no bounce back for the UBS YES strategy. Investors were still suffering losses, even as the uptick progressed. The evidence that Zamansky’s team uncovered at the time showed a pattern of deception by UBS, its investment brokers, and advisors. Specifically, his team talked to investors and reviewed materials that showed that UBS continued to hype the potential returns of the UBS YES strategy without telling investors about the possibility of significant downfalls.
UBS YES Strategy Lawsuit Lawyer Jake Zamansky Holds Brokers Accountable for Unsuitable Advice
Just like doctors have an oath, financial advisors have a legal duty to provide suitable investment advice. Recognizing the differences in risk tolerances and portfolio values, it is the essential role of a financial advisor to offer guidance tailored to each individual investor’s goals and needs.
In regards to UBS YES strategy investments, advisors provided unsuitable recommendations that allowed them to earn a commission regardless of the strategy’s performance. The result? Millions lost because of broker misconduct.
Zamansky, LLC – PaperStreet Clients Making a Difference
Zamansky continues to fight on behalf of the harmed investors who have been (and continue to be) stung by the unscrupulous dealings of investment firms like UBS and their brokers.
If you or a loved one has concerns about your investments, particularly if your broker or investment firm suggested YES for your portfolio, contact Zamansky, LLC and do what you need to do to recover your losses. And, of course, tell them PaperStreet sent you.
