Another Mammoth Award of $2.2 Million Against UBS
A Financial Industry Regulatory Authority (FINRA) panel in Philadelphia, PA struck another crushing blow awarding Claimants $2.2 million against UBS Financial Services relating to the sale of Lehman Brothers structured products, according to a Dow Jones Newswire and a Wall Street Journal article. The Claimant Thomas F. Motamed was Chairman and CEO of CNA Financial Corporation but apparently the panel made the decision that his position as a chief executive for a financial corporation did not mean that he understood the nature and risks involved with the Lehman structured products. Accordingly, the panel ordered UBS to pay $2.2 million to Mr. Motamed and his wife, Christine. This was 100% of their losses. Additionally, UBS was ordered to pay interest on the $2.2 million at a rate of 6% per annum from April 4, 2008 until the award was paid, plus $13,650 in forum fees for the arbitration. (FINRA# 09-02087; Thomas F. Motamed and Christine B. Motamed v. UBS Financia Services, Inc., R. Ashley Early and Judith L. Sierko)
According to FINRA BrokerCheck Reports, the brokers named in the case who worked out of the Charleston, SC office are no longer with UBS since March 2009 and each had other customer complaints filed against them for selling structured products resulting in settlements of between $2.9 million and $3.8 million, in addition to the $2.2 million award to the Motameds.
If you have suffered losses from investing in Lehman Brothers’ structured products, please contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.