Former Merrill Lynch, Pierce, Fenner & Smith, Inc. and UBS Financial Services, Inc. Client Wins FINRA Arbitration for Energy Sector Losses

In October 2018, a former client of Merrill Lynch, Pierce, Fenner & Smith, Inc. and UBS Financial Services, Inc. settled an award in a FINRA arbitration for compensatory damages and received $70,000 for losses sustained from investments in the high risk energy market. The investors were clients of financial advisor John Lahoud (CRD# 4254835).

The causes of action included unsuitable investments; breach of fiduciary duty in violation of common law and FINRA Rule 2010; punitive damages; material misrepresentations and negligence in violation of FINRA Rule 2010; and, failure to supervise. The causes of action relate to investments in energy-related equities and limited partnerships. The FINRA arbitration hearing was conducted in Jacksonville, Florida.

Lahoud has been registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated in Paramus, New Jersey since 2013. Previously, he was registered with UBS Financial Services Inc. in Paramus, New Jersey from 2007 to 2013. Lahoud has also been the subject of four additional customer complaints between 2012 and 2017, one of which was denied, according to his CRD report:

• August 2017. “The Customers allege unsuitable investment recommendations, unauthorized trading and misrepresentation and omission of material facts from 2012 to 2015.” The case was settled for $92,500.
• May 2017. “Client alleges unsuitable investment recommendations from May 2015 to April 2017.” The case is currently pending.
• May 2017. “Client alleges unsuitable investment recommendations from April 2015 to April 2017.” The case is currently pending.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Merrill Lynch, Pierce, Fenner & Smith, Inc. and UBS Financial Services, Inc. may be liable for investment or other losses suffered by Lahoud’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.