UBS Group AG and Merrill Lynch Are Being Investigated for Sales of Unsuitable Investments

Federman & Sherwood has initiated an investigation of UBS Group AG and Merrill Lynch. UBS Group AG (NYSE: UBS) sold a very complex investment strategy called Yield Enhancement Strategy (YES). Merrill Lynch sold a similar product called the Collateral Yield Enhancement Strategy (CYES). The primary strategy of these complex trading strategies, both of which utilized leverage and borrowed money putting investors at further risk, is called an “Iron Condor”. This involves simultaneously entering into multiple option positions at the same time while essentially betting on the volatility of the market and certain indexes. These products, which had very high commissions, were peddled to retail customers with a focus on widows, retirees and elderly looking for yield. The brokerage firms apparent excuse is that the retail customers were given offering documents that “fully” explained the investments and therefore accepted the risk while relying on their brokers assurances that the investments were suitable. Federman & Sherwood, a boutique securities litigation law firm with over 37 years of experience, is investigating both UBS and Merrill Lynch for their sales practices in selling unsuitable investments.

If you have information about UBS or Merrill Lynch sales practices or invested in these highly-leveraged products and lost money, please contact William Federman at (405) 235-1560 or by email [email protected]. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.

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