![]() ![]() ![]() UBS settled the lawsuit with a payout of $120 million. The lawsuit charged that UBS’s depiction of the financial condition of Lehman Bros. In August 2013, UBS settled a class action lawsuit filed by holders of Lehman notes. As a result, UBS also agreed to pay $8.25 million in restitution to American investors. In September 2008, Lehman Brothers filed bankruptcy leaving all guarantees worthless. From the period beginning March 2007 through September 2008, UBS sold as underwriter up to $900 million worth of 100% Principal-Protection Notes. In 2011, the Financial Industry Regulatory Authority (FINRA) fined UBS $2.5 million in connection with the sale of Lehman Brothers Holdings structured notes for misrepresentations and omissions of material facts made to investors. Lehman Brothers Principal Protected Notes UBS’s actual losses were subsequently confirmed as $2.3 billion, and regulatory investigators where interested in determining how these trading activities could have gone unnoticed for such an extended period without detection. The broker was arrested and later charged with fraud by abuse of position and false accounting dating as far back as 2008. The rogue broker who was 31 years old at the time worked on the Delta One desk of UBS’ trading desk. 2011 London Rogue Trader ScandalĪccording to a BBC report, UBS became aware of a massive loss on Septemthat was estimated at $2 billion, due to unauthorized trading allegedly by Kweku Adoboli. taxpayers which involved billions of dollars. Birkenfeld is credited with bringing to light UBS’ clandestine activities that were complicit with the tax avoidance schemes of U.S. According to a Forbes article, the IRS Whistleblower Office paid Birkenfeld a $104 million award for acting as a corporate whistleblower. ![]() As a result of his cooperation with the IRS, they were able to prosecute UBS and their U.S. Birkenfeld faced career setbacks as a result of UBS retaliation against him for the revelations he helped uncover for U.S. laws enforced by the Internal Revenue Service (IRS). In 2005, UBS private banker Bradley Birkenfeld claimed to have knowledge that UBS and their United States citizen clients violated U.S. Since the name change UBS has been the subject of many regulatory investigations, some which resulted in disciplinary actions by regulators. The merged entity operated under the name UBS Paine Webber until 2003 when the brokerage firm was known as UBS Financial Services. The merger resulted in the formation of the fourth largest brokerage firm in the country with 385 offices nationwide and over eight thousand licensed brokers. and Kidder Peabody, in a deal valued at $10.8 billion in cash and stock. In November 2000, UBS merged with Paine Webber, an iconic brokerage firm with a heritage that includes acquisitions of Blyth, Eastman Dillon & Co. ![]()
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