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UBS Broker Jose Cornide Subject Of 11 Customer Disputes For Yield Enhancement Strategy (YES)

Jose Cornide (CRD#: 2785918), a currently-registered broker with UBS Financial Services (CRD#: 8174) in Coral Gables, Florida, is the subject of 12 disclosures on his publicly-available FINRA BrokerCheck report. All 12 disclosures are customer disputes. 11 of the customer disputes were filed in 2019 and 2020 and seem to involve investment in the UBS Yield Enhancement Strategy (YES), a complex options trading scheme that was marketed as safe, but actually involved significant risk and caused some investors to suffer considerable losses.Jose Cornide (CRD#: 2785918), a currently-registered broker with UBS Financial Services (CRD#: 8174) in Coral Gables, Florida, is the subject of 12 disclosures on his publicly-available FINRA BrokerCheck report. All 12 disclosures are customer disputes.

11 of the customer disputes were filed in 2019 and 2020 and seem to involve investment in the UBS Yield Enhancement Strategy (YES), a complex options trading scheme that was marketed as safe, but actually involved significant risk and caused some investors to suffer considerable losses.

Before joining UBS, Jose Cornide was previously employed by Goldman Sachs (CRD#: 361) in New York, NY from 1996-2004.

Customer Disputes Against Jose Cornide

Cornide had just one complaint on his record before 2019. It came in 1998 and was closed with no action. Then the customer disputes regarding the UBS YES fund began:

  • February, 2020: A customer dispute states that “Claimant’s counsel alleges unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.” $25,000,000 in damages requested, pending.
  • March, 2019: A client alleged “the investment strategy was misrepresented to be very safe, very stable, not volatile and very liquid.” The client stated that the financial advisor told him the investment was “almost like a savings account and about as safe as it can get.” The claim was denied.
  • April, 2019: A client who alleged he was a low-risk investor says he “was fraudulently sold into this product.” The claim was denied.
  • April, 2019: A client’s lawyer alleged “unsuitability and misrepresentation with respect to recommendations to invest and hold an options overlay strategy.” $10,000,000 in damages requested, pending.
  • June, 2019: Client’s lawyer alleges “unsuitability and misrepresentation regarding an options overlay strategy.” $1,200,000 in damages requested, pending.
  • July, 2019: Client’s lawyer alleges “unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.” The claim is pending.
  • August, 2019: Client’s lawyer alleges “unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.” $500,000 damages requested, pending.
  • September, 2019: Client’s lawyer alleges “unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.” $1,750,000 damages requested, pending.
  • October, 2019: Client’s lawyer alleges “unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.” $2,000,000 damages requested, pending.
  • November, 2019: Client’s lawyer alleges “unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.” $500,000 damages requested, pending.
  • December, 2019: Client’s lawyer alleges “unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.” $1,500,000 damages requested, pending.

What Is The UBS Yield Enhancement Strategy (YES)

So many of Jose Cornide’s clients are trying to recover losses from the UBS Yield Enhancement Strategy and feel that the program was misrepresented and unsuitable. Let’s look at why that might be.

The UBS YES program was an options trading strategy that involved 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 equity in the investor’s accounts and didn’t require depositing additional funds.

UBS allegedly marketed its YES program as a conservative strategy for high net worth investors to increase return on their money without taking substantial risk. But options trading is inherently speculative, and is only suitable for investors seeking that type of risk.

The UBS YES program caused many investors to incur serious losses. Investors have alleged that UBS and its representatives did not adequately disclose the risks involved, that they may not have considered their objectives when selling this strategy, and/or that they did not execute the strategy as represented.

Recovering UBS YES Losses Through FINRA Dispute Resolution

FINRA (the Financial Industry Regulatory Authority) operates a dispute resolution forum where non-judicial arbitration and mediation can resolve securities-related disputes between investors and brokerage firms and brokers.

The benefit of arbitration through FINRA is that damages may be recovered, usually faster and with less expense than through litigation. Awards for damages are legally binding and not typically overturned.

Do You Have Investment Loses With Jose Cornide or The UBS Yield Enhancement Strategy?

If you or someone you know lost money investing with Jose Cornide or The UBS Yield Enhancement Strategy, please contact the Silver Law Group toll free at (800)-975-4345 or e-mail ssilver@silverlaw.com for a confidential consultation. Our attorneys have extensive experience representing investors with losses related to unsuitability and misrepresentation, and represent investors in Florida and nationwide.

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