UBS Agrees to Pay $10 Million to Settle SEC Charges

Posted on July 27th, 2020 at 4:23 PM
UBS Agrees to Pay $10 Million to Settle SEC Charges

From the Desk of Jim Eccleston at Eccleston Law LLC:

UBS Financial Services Inc. has agreed to pay $10 million to settle charges brought by the U.S. Securities and Exchange Commission (‘SEC”) that UBS circumvented the priority given to retail investors for certain municipal bond offerings. 

The SEC alleged that UBS allocated bonds that were intended to be sold to retail customers to “flippers,” who would then immediately resell the bonds to other broker-dealers for a profit. According to the SEC, UBS either knew or should have known that these “flippers” were not eligible for retail priority. 

UBS entered into the settlement without admitting or denying the SEC’s findings. As part of the settlement, UBS will receive a censure and pay a $1.75 million penalty, $6.74 million in disgorgement, and $1.5 million in prejudgment interest.  Additionally, UBS consented to a cease-and-desist order which finds that UBS violated the disclosure, fair dealing and supervisory provisions of Municipal Securities Rulemaking Board Rules G-11(k), G-17, and G-27, as well as finding that UBS failed to reasonably supervise under Section 15(b)(4)(E) of the Securities Exchange Act of 1934. 

The SEC also brought related charges against UBS registered representatives William S. Costas and John J. Marvin. Costas agreed to pay a total of $41,585 in disgorgement, prejudgment interest and civil penalties.  Marvin agreed to pay a total of $52,966 in disgorgement, prejudgment interest and civil penalties.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: eccleston, eccleston law, james eccleston, ubs, ubs financial services, sec

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Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.


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