UBS was held responsible for its stockbroker’s breach of duty and UBS’s lack of supervision in the recommendation and sale of variable annuities of American Skandia. In Dallas, Texas UBS stockbroker Matthew Fuller was improperly supervised by UBS in the sale of annuities. The customer asserted violation of the Texas Deceptive Trade Practices Act; breach of contract; and breach of fiduciary duty. We have handled many variable annuity cases as there are many ways that these complex investments can be recommended to the wrong customer, at the wrong time, and for the wrong purposes, resulting in large losses to the customer.

UBS was ordered to compensate a customer who had lost more than $248,000 in purchases of various unspecified securities and sale of various securities without authorization including, but not limited to, Bank of America Corporation, Exxon Mobil Corp., Motorola Inc., and Southern Company. UBS broker Rafael A. Calleja, Tampa Florida was involved. The customer alleged violation of suitability standard (Rule 2310); fraud in violation of Florida Statutes 517; breach of fiduciary duty; and negligence.

UBS was found liable and required to pay a customer more than $250,000 for its failure to properly supervise UBS stockbroker Bryan Dunn in Phoenix, Arizona. The customer claimed that UBS permitted its stockbroker to recommend unsuitable purchases, made negligent misrepresentation; failed to remedy; breached of fiduciary duty; and violated the Arizona Securities Act-A.R.S. § 44-1991. The claim was based on the UBS recommendation to purchase the Guaranteed Life Benefit of the Sun Life Financial MFS Master Flex variable annuity, resulting in more than $200,000 losses.