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UBS Has Another Scandal Brewing

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UBS Has Another Scandal Brewing

(Miami)

UBS has been no stranger to scandal since the Crisis, with its money laundering scandal causing major headlines. No it has a smaller, albeit no-less-interesting-for-advisors scandal brewing regarding management oversight of broker behavior. A few years ago the company fired a broker for a scandal involving a broker's girlfriend controlling the trust of a wealthy client of the broker's. The scandal made headlines because arrests were made and the girlfriend in question happened to be a high profile socialite. Later, the whistleblower in the case, a VP at UBS, was fired, allegedly for insider trading. The VP is now fighting back saying it was a bogus claim to expel him from the company for blowing the whistle, so the whole story is getting dragged through the courts.

FINSUM : The heart of this case has to do with corporate oversight of broker behavior and how big wirehouses treat whistleblowers. The whole thing could get very ugly.

  • UBS
  • brokers
  • whistle blower
  • oversight

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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