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Delaware reaches settlement with brokerage firm over allegations it violated securities laws

Department of Justice | Department of Justice Press Releases | Fraud | Date Posted: Monday, October 28, 2013



Wilmington – Attorney General Beau Biden announced today that UBS Financial Services, Inc. has paid the Delaware Department of Justice $70,077 as a result of a settlement with the Attorney General’s Investor Protection Unit.  The settlement resolves a multi-state investigation which found that UBS failed to ensure that its agents were properly registered in Delaware and other states.

“State law requires those who sell stocks and securities to Delaware investors to be registered with our Investor Protection Unit,” Attorney General Biden said today.  “We’ve acted to hold UBS accountable to Delaware’s Securities Act and ensure UBS agents are registered with us as required so that we can continue to safeguard the investments, pensions, and retirement funds of Delawareans.”

UBS Financial Services, Inc. functions as a broker-dealer in Delaware.  The states’ investigation found that a flaw in UBS’s order entry system allowed agents not registered in Delaware to accept orders from investors in Delaware. The flaw was unrecognized for six years. UBS settled the multi-state investigation, coordinated by the North American Securities Administrators Association and led by the New Jersey Bureau of Securities, by agreeing to pay up to a total of $4.58 million in civil penalties among the 50 states, District of Columbia, Puerto Rico and the U.S. Virgin Islands.  UBS entered into the settlement with the Investor Protection Unit without admitting or denying the findings of fact and conclusions of law. In addition to its payments to the states, UBS revised its client transaction processes and supervisory procedures to address the violations.  Delaware’s payment was made to the Attorney General’s Investor Protection Fund which supports securities fraud investigations and investor education initiatives.

The Attorney General’s Investor Protection Unit, formerly known as the Securities Division, enforces the Delaware Securities Act and seeks to prevent the public from being victimized by fraudulent, unscrupulous or overreaching practices by those offering investments and investment services within the state. Biden urged investors who believe they have been the victims of such practices to immediately contact the Investor Protection Unit Hotline at 302-577-8424.

Delaware’s participation in the multistate investigation that led to the settlement was handled for Delaware by Investor Protection Director Owen Lefkon and Assistant Attorney General David Casler.

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Delaware reaches settlement with brokerage firm over allegations it violated securities laws

Department of Justice | Department of Justice Press Releases | Fraud | Date Posted: Monday, October 28, 2013



Wilmington – Attorney General Beau Biden announced today that UBS Financial Services, Inc. has paid the Delaware Department of Justice $70,077 as a result of a settlement with the Attorney General’s Investor Protection Unit.  The settlement resolves a multi-state investigation which found that UBS failed to ensure that its agents were properly registered in Delaware and other states.

“State law requires those who sell stocks and securities to Delaware investors to be registered with our Investor Protection Unit,” Attorney General Biden said today.  “We’ve acted to hold UBS accountable to Delaware’s Securities Act and ensure UBS agents are registered with us as required so that we can continue to safeguard the investments, pensions, and retirement funds of Delawareans.”

UBS Financial Services, Inc. functions as a broker-dealer in Delaware.  The states’ investigation found that a flaw in UBS’s order entry system allowed agents not registered in Delaware to accept orders from investors in Delaware. The flaw was unrecognized for six years. UBS settled the multi-state investigation, coordinated by the North American Securities Administrators Association and led by the New Jersey Bureau of Securities, by agreeing to pay up to a total of $4.58 million in civil penalties among the 50 states, District of Columbia, Puerto Rico and the U.S. Virgin Islands.  UBS entered into the settlement with the Investor Protection Unit without admitting or denying the findings of fact and conclusions of law. In addition to its payments to the states, UBS revised its client transaction processes and supervisory procedures to address the violations.  Delaware’s payment was made to the Attorney General’s Investor Protection Fund which supports securities fraud investigations and investor education initiatives.

The Attorney General’s Investor Protection Unit, formerly known as the Securities Division, enforces the Delaware Securities Act and seeks to prevent the public from being victimized by fraudulent, unscrupulous or overreaching practices by those offering investments and investment services within the state. Biden urged investors who believe they have been the victims of such practices to immediately contact the Investor Protection Unit Hotline at 302-577-8424.

Delaware’s participation in the multistate investigation that led to the settlement was handled for Delaware by Investor Protection Director Owen Lefkon and Assistant Attorney General David Casler.

# # #

image_printPrint

Related Topics:  , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.