Case Results

SETTLEMENT

$3,900,000 recovery for an octogenarian retiree alleging fraud

$3,900,000 recovery for an octogenarian retiree alleging fraud, undue influence by the broker in accepting gifts and inserting themself in the client’s estate planning, and failure to timely hedge a large stock position.

Case no. 20-03856

John Oren and Elise Oren v UBS Financial Services, Inc.

Erez Law represented John and Elise Oren against UBS and recovered $3.8M. The case stems from the sale by UBS to the Orens of its proprietary YES investment strategy. UBS promoted and marketed YES as a low-risk options overlay strategy that would generate additional income. In fact, YES was a high-risk, directional and aggressive iron condor strategy that failed. The award is significant because the arbitrators awarded the Orens their losses of $2 million in addition to the return that was represented they would receive called benefit of the bargain damages as well as prejudgment interest. The panel also found a violation of the Texas Securities Act and awarded attorney’s fees of $965,657 as well. The trial lasted eight days and took place in Houston, Texas.

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SETTLEMENT

Recovered $3.5 million from a major brokerage firm

Recovered $3.5 million from a major brokerage firm for clients who lost money investing in a proprietary options strategy. The settlement amount represented a very high percentage of the clients’ losses. Erez Law brought claims based upon the unsuitability of the investment, misrepresentations and failure to make adequate disclosures, amongst other things. The case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

CASE NO. 17-01908

Isabel Litovich-Quintana and Jose A. Torres v. Morgan Stanley Smith Barney, LLC d/b/a Morgan Stanley

Isabel Litovich-Quintana and Jose A. Torres v. Morgan Stanley Smith Barney, LLC d/b/a Morgan Stanley Erez Law represented a Puerto Rican married couple that sustained significant losses in Puerto Rico focused closed-end funds, Puerto Rico bonds and a junk bond. The investors were customers of Angel Aquino who was employed at Morgan Stanley as a financial advisor. The Erez Law clients alleged that Morgan Stanley recommended an over-concentrated and unsuitable investment in Puerto Rico funds and bonds as well as in a junk bond issued by Harrah’s. Morgan Stanley denied the allegations. The final hearing lasted 19 days. During the final hearing, there was testimony and evidence that Morgan Stanley obstructed the investors’ efforts to sell their Puerto Rico funds. The Award is noteworthy in that the total amount awarded exceeds the requested damages and that the panel awarded $3,000,000 of the amount awarded as sanctions for Morgan Stanley’s “noncompliance with the Panel’s Orders” as it relates to orders that required Morgan Stanley to produce documents relating to the financial advisor’s termination of employment. On December 10, 2020, the 11th Circuit Court of Appeals affirmed the Award and denied Morgan Stanley’s appeal to vacate the Award.

View Award | US Court Of Appeals Decision of Dec 10 2020

SETTLEMENT

Recovered $3.2 million from a major brokerage firm

Recovered $3.2 million from a major brokerage firm for clients who lost money investing in a proprietary options strategy. The settlement amount represented a very high percentage of the clients’ losses. Erez Law brought claims based upon the unsuitability of the investment, misrepresentations and failure to make adequate disclosures, amongst other things. The case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

SETTLEMENT

$3,200,000 recovery for investors

$3,200,000 recovery for investors in variable annuity products.

SETTLEMENT

Recovered $3 million from a major brokerage firm

Recovered $3 million from a major brokerage firm for clients who lost money in Puerto Rico bonds and Puerto Rico focused closed-end funds. Erez Law brought claims based upon the unsuitability of the investments, misrepresentations and failure to make adequate disclosures, amongst other things. The case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

SETTLEMENT

Recovered $2.8 million from a major brokerage firm

Recovered $2.8 million from a major brokerage firm for a client who lost money investing in Puerto Rico focused closed-end funds. Erez Law brought claims based upon the unsuitability of the investments, misrepresentations and failure to make adequate disclosures, amongst other things. The case was filed with FINRA Dispute Resolution and was settled very close to the start of the trial date.

CASE NO. 14-00304

Puerto Rico Investors v. UBS Financial Services, Inc. and UBS Financial Services of Puerto Rico, Inc.

Erez Law represented a retired couple that sustained significant losses in UBS proprietary closed-end funds that invested predominantly in Puerto Rico bonds. The couple were customers of Jose “Whopper” Ramirez who has been fired from UBS and has received a Wells Notice from the S.E.C. in which it indicated that it recommended fraud charges be brought against Mr. Ramirez. The Claimants alleged that Mr. Ramirez recommended an over concentrated position in the UBS Puerto Rico funds and that he recommended the illicit use of a non-purpose loan to invest in securities. The FINRA panel awarded the Claimants $2,545,000.

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Case no. 23-01270

Douglas Muhlbauer et al. v Stifel, Nicolaus & Co., Inc.

Erez Law obtained an Award of 2.5M, which included damages under Florida Statutes 517 – the Florida Securities Act as well as attorney’s fees. The claim was based on the sale of structured notes and the management of a non-discretionary managed account. Erez Law obtained critical text message evidence which supported our clients’ claims. Erez Law represents 15 clients of broker Chuck Roberts in 15 separate arbitration cases. The case is notable in that the arbitrators found a violation of the Florida Securities Act and awarded attorney’s fees against Stifel, Nicolaus & Co., Inc.

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