Broker Jose Cornide Subject Of Customer Disputes For Selling UBS Yield Enhancement Strategy (YES)
September 16, 2019 | Share
UBS Financial Services (CRD# 8174) broker Jose Cornide (CRD#: 2785918) is the subject of 7 disclosures, all customer disputes, on his FINRA BrokerCheck report. The majority of the disputes are from customers alleging unsuitability and misrepresentation regarding the UBS Yield Enhancement Strategy (YES).
Since 2004, Cornide has been employed by UBS Financial Services, and works out of their Coral Gables, Florida office. Before that, he worked for Goldman Sachs from 1996-2004. Cornide had just one customer dispute before 2019, which came in 1998 and was closed with no action.
Our team of lawyers currently represent other investors in claims against UBS for the sale of the Yield Enhancement Strategy.
UBS Yield Enhancement Strategy (YES) Jose Cornide Customer Disputes
Cornide’s publicly-available BrokerCheck report shows that in April, 2019, an attorney filed a claim on behalf of a client that alleged “unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.” That options overlay strategy is the UBS Yield Enhancement Strategy. The damage amount requested is $10,000,000, and the case is pending.
Three more nearly-identical customer disputes were filed in June, July, and August, 2019, with customers also alleging unsuitability and misrepresentation with respect to recommendations to invest in and hold the UBS Yield Enhancement Strategy. The June dispute is requesting $1,200,000 in damages, and the August dispute is requesting $500,000 in damages. Those disputes are still pending.
What Is The UBS YES?
The YES program involved trading options with a complex series of put and call spreads on the S&P 500 index with a strategy called an “iron condor”. It’s called an options overlay strategy because it used the equity in the investor’s account and didn’t require them to put more money into their account.
UBS allegedly marketed its YES program as a conservative way for high net worth investors to increase return on their money with little risk. But options investing is risky, speculative, and only suitable for investors seeking such risks. The UBS YES program caused many investors to suffer significant losses.
Many investors have alleged UBS and its representatives did not adequately disclose the risks involved in their strategy and/or they may not have considered the investor’s objectives when pushing this strategy. For those reasons, it may be possible to recover losses from this product.
FINRA Dispute Resolution
FINRA operates a dispute resolution forum where non-judicial arbitration and mediation proceedings can resolve securities disputes between investors and brokerage firms and brokers.
The benefit of filing an arbitration or mediation claim with FINRA is that you can recover damages, usually faster than through litigation. Awards for damages are legally binding and they are not typically overturned.
Our team of attorneys have been working together on cases for many years. Our leading attorneys have extensive experience prosecuting investment fraud disputes. Our background and experience includes working at the Securities and Eschange Commission (SEC), in house counsel for a brokerage firm, and on Wall Street as a defense attorney. Our past experience gives us the knowledge and resources necessary to help you maximize your recovery.
Contact our UBS YES attorneys today at 800-975-4375.