Investors Sue UBS Financial In Bad Options Overlay Strategy

Gerard Joseph Costello of New York New York a stockbroker currently associated with UBS Financial Services has been referenced in a customer initiated investment related arbitration claim in which the customer requested $350,000.00 in damages supported by allegations that (1) misrepresentations had been made by the stockbroker concerning an options overlay strategy implemented in the customer’s account and (2) unsuitable options transactions had been recommended to the customer during the period in which Costello was employed by UBS Financial Services. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01201 (Apr. 30, 2020).

FINRA Public Disclosure reveals that Costello has been identified in four additional customer initiated investment related disputes concerning accusations of his misconduct when he was employed by UBS Financial Services. Costello is the subject of a customer initiated investment related complaint on April 9, 2018 where the customer sought more than $5,000.00 in damages based upon accusations that the customer was placed into investments which were not supported by the customer’s goals and risk tolerance. The claim also alleges omissions by the stockbroker relating to the volatility of the investment held in the customer’s managed account between September 11, 2017 and April 6, 2018.

On December 26, 2018, another customer filed an investment related complaint involving Costello’s conduct in which the customer requested more than $5,000.00 in damages based upon allegations that from December of 2017 to December of 2018, the customer was steered into an options strategy that was unsuitable and misrepresented. According to the claim, the customer was erroneously led to believe that the investment strategy contained low risk. The claim also alleges non-disclosures by the stockbroker as it pertained to the customer’s investments.

Costello is also the subject of a customer initiated investment related arbitration claim where the customer sought $348,000.00 in damages founded on accusations of the customer being placed into an options overlay strategy between 2017 and 2019 that failed to be represented accurately and which was in no way appropriate for the customer. FINRA Arbitration No. 19-02295 (Sept. 3, 2019).

On April 15, 2020, a customer filed an investment related arbitration claim pertaining to Costello’s conduct in which the customer requested $890,000.00 in damages supported by allegations of suitability and misrepresentation relating to options transactions that were facilitated in the customer’s managed account between 2017 and 2020 that caused the customer to incur losses. FINRA Arbitration No. 20-01035 (Apr. 15, 2020).

Costello has been associated with UBS Financial Services since November 20, 2015.