Robert Perlman (Robert Benjamin Perlman) has been in the securities industry since 1988 when he started at Lehman Brothers (CRD# 7506). He then worked for Credit Suisse Securities (USA) LLC (CRD# 816) before joining UBS (CRD# 8174) in 2015. He works in New York City.
Robert Perlman UBS YES Dispute
The most recent customer dispute on Perlman’s BrokerCheck report was filed in May, 2019. In it, the customer’s attorney “alleges unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.” $750,000 in damages are requested, and the dispute is pending.
The options overlay strategy is the UBS Yield Enhancement Strategy (YES) program, which was an trading strategy involving a series of put and call option spreads on a market index. It’s referred to as an “options overlay strategy” because it used the equity in the investor’s account rather than requiring additional funds to be deposited.
UBS allegedly sold high net worth clients on YES as a conservative strategy for making a better return on their money. However, options trading involves significant risk and is only suitable for those seeking such risks. Many investors the UBS YES program ended up losing money, some up to 20%.
Recovering UBS YES Losses With FINRA Arbitration
Customers of FINRA-registered firms, such as UBS, are required to resolve disputes through FINRA’s arbitration and mediation forum. The non-judicial process allows investors the opportunity to recover losses without the time and expense of going to court. An arbitration panel can award a customer anything a court can, and awards for damages are not easily overturned.
Many investors have made FINRA arbitration claims to recover their UBS YES losses. They often allege unsuitability and misrepresentation by UBS regarding the Yield Enhancement Strategy.
Other Customer Disputes
In July, 2013 a customer alleged “unauthorized trading, failure to follow instructions, and poor performance.” The claim requested $190,000 in damages and was closed with no action.
In May, 2002, a customer complained that Perlman “offered unsuitable investment advice and misrepresented the value of his account. Alleged damages are unspecified but believed to exceed minimum filing requirements.” The claim was denied.
Unsuitability And Misrepresentation
Unsuitability and misrepresentation, alleged in the UBS YES claim against Perlman, are common issues that negatively affect investors. Though different, they often occur together and involve a broker failing to act in the best interest of the investor.
Unsuitability is when a broker recommends an investment that is not appropriate for the investor given their objectives, finances, or tolerance for risk. For instance, if a broker sells a high-risk illiquid investment to a retiree who wants a conservative investment they can withdraw from.
FINRA Rule 2111 states that a member or associated person must have a “reasonable basis” for believing a recommended transaction or strategy is suitable for an investor based on “reasonable due diligence” into the investor’s profile.
Misrepresentation frequently occurs when a broker is selling high-risk or volatile products and attempts to conceal their negative characteristics. Investors often don’t become aware that the investment was misrepresented to them until they lose money.
Fortunately, investors have the opportunity to use FINRA’s dispute resolution forum to recover their losses, naming misrepresentation and unsuitability as causes of action in claims against the broker-dealer.
Do You Have Investment Loses With Robert Perlman Or The UBS Yield Enhancement Strategy?
If you or someone you know lost money investing with Robert Perlman or The UBS Yield Enhancement Strategy, please contact the Silver Law Group toll free at (800)-975-4345 or e-mail ssilver@silverlaw.com for a no-cost confidential consultation. Our attorneys have extensive experience representing investors with losses related to misrepresentation and unsuitability, and represent investors in Florida and nationwide.