Matthew Buchsbaum Embroiled in Million-Dollar YES Disputes

Matthew Buchsbaum (CRD #: 2220565), a broker and investment advisor registered with UBS Financial Services, had three new investor disputes added to his record in 2022, according to his BrokerCheck record, accessed on December 29, 2022. Keep reading for more information on his alleged conduct as a broker. 

According to allegations filed on October 21, 2022, an investor alleges that Matthew Buchsbaum misrepresented an unsuitable options overlay strategy called the Yield Enhancement Strategy (YES) program. This dispute was denied, but investors should know that investors can recover losses following a denial. 

On August 31, 2022, another investor alleged that the YES program was unsuitable. They are seeking $1.4 million in this pending dispute. 

On July 11, 2022, an investor alleged unsuitability and misrepresentation with respect to the YES options overlay strategy. The investor is seeking $750,000. 

According to the allegations filed on December 10, 2021, Matthew Buchsbaum was named in a putative class action seeking to recover losses incurred by UBS. The investor alleges that the firm failed to accurately disclose the risks associated with YES. The investor is seeking $1,200,000,000. 

Negligence Allegations

On March 13, 2019, Matthew Buchsbaum was the subject of an investor dispute. According to the allegations, Matthew Buchsbaum was negligent, breached his fiduciary duty, breached his contract; and failed to supervise. FINRA awarded the investor $691,205.67 and found the respondent liable for additiona interest and fees. You can read the award here. 

Unsuitability and Misrepresentation Allegations

Between 2019 and 2021, Matthew Buchsbaum was involved in 28 investor disputes.

Unsuitability and Misrepresentation

Investors should be aware of FINRA rules regarding unsuitability and misrepresentation. 

What is Unsuitability?

Unsuitability is a term used to describe recommendations and trades that are inconsistent with the customer’s goals and investment profile.

Under FINRA Rule 2111, a customer’s investment profile includes the customer’s:

• Age
• Financial situation and needs
• Tax status
• Investment objectives
• Investment experience
• Risk tolerance.

Brokers should take into account any risk tolerances or goals the person has expressed before making recommendations, and take note if those preferences change over time. 

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

What is Misrepresentation?

Misrepresentation is a common problem in the securities industry. It usually occurs when an investment broker makes false or misleading statements about a financial product in an effort to persuade their customer to invest. 

Did you know that any of the following can be considered misrepresentation or omission?

• Inadequate due diligence concerning security offerings
• Failure to disclose all material risks
• Failure to disclose all transaction costs
• Unrealistic presumptions for investment projections
• Inaccurate investment performance calculation

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits.

This conduct may also violate FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor. 

Losses that can be attributed to a stockbroker’s material misrepresentations of facts may result in a viable securities arbitration claim for damages.

Background Information

Matthew Buchsbaum has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Matthew Buchsbaum is a registered broker in 50 states as well as Washington DC. He is also a registered investment advisor in four states.

Other than UBS Financial Services, Matthew Buchsbaum has also worked with the following firms:

• Credit Suisse Securities (USA) (CRD#:816)
• Donaldson, Lufkin & Jenrette Securities Corporation (CRD#:7560)
• A.G. Edwards & Sons (CRD#:4)

Kurta Law Can Help

If you have worked with Matthew Buchsbaum and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.