UBS Sued For Unsuitable Investment Recommendations

David Richard Watkins (CRD #: 1043375) is a UBS Financial Services Inc. financial advisor (2004 – present) who disclosed a consumer-initiated, investment-related complaint from August 14, 2017 containing allegations that Watkins made unsuitable investment recommendations. The customer specifically alleged to have been poorly advised between May 2013 and October 2016 about the purchasing and holding of investments including exchange-traded funds (ETFs), equities and fixed-income municipal bonds. The customer is seeking $5,000,000.00 in damages.

There are at least two other UBS customers who have alleged Watkins to have committed sales practice violations. According to FINRA BrokerCheck, on September 24, 2015, a UBS customer filed a complaint alleging that from January 3, 2011 to August 12, 2015, the customer’s assets were allocated in bonds that were not appropriate for the customer. The customer alleged Watkins failed to follow the customer’s investment instructions of buying municipal bonds with a credit rating of AA or higher. Watkins was accused by the customer of knowing the bonds were classified as subordinated debt. Watkins’ investment recommendation, the customer contended, was driven by the fact that UBS had underwritten the bonds. UBS and the customer settled the complaint for $60,000.00 in damages.

On June 15, 2018, another customer of UBS filed a complaint alleging he was not provided important information about the reduction of a coupon rate on a municipal-debt investment and corresponding increase in the price of the security. The customer contended that he never authorized a bond to be purchased at the lower coupon rate. UBS estimated that the customer’s alleged damages exceed $5,000.00.

If you believe you are a victim of sales practice violations such as those alleged to have been committed by David Richard Watkins, contact the Law Office of Peter M. Spett for a complimentary consultation to evaluate your legal rights and claims.