A regulatory action filed by the State of New Hampshire against UBS Financial Services, Inc on June 3, 2009 provides further evidence that investors were mislead by the brokerage firm in connection with the sale of a structured product known as Lehman Brothers Principal Protected Notes ("PPN").
New Hampshire concluded that, "the methods by which UBS offered and sold the Lehman Brothers structured products to its clients constituted dishonest and unethical business practices," according to the complaint filed by the Bureau of Securities Regulation.
The nationally recognized securities law firm of Aidikoff, Uhl & Bakhtiari has filed securities arbitration claims against UBS totaling more than $10 Million and is currently investigating others, according to Ryan K. Bakhtiari
"In selling structured products that purported to offer protection of principal, UBS touted them as products that had the potential for gains with little or no risk to principal," said Philip M. Aidikoff, who also added that, "brokers were encouraged to sell PPN's as a way to increase the bonuses they would be entitled to."
New Hampshire concluded that UBS failed to adequately supervise its employees in the production, distribution, offering and sale of risky structured products and failed in its ongoing duty to assess the suitability of these investments.
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