NEW YORK–(BUSINESS WIRE)–Zamansky LLC is investigating UBS Financial Services Inc. (UBS), the broker-dealer, over possible sale practice violations which resulted in losses to investors in ETRACs (Symbols: HDLV, SMHD, DVHL, CEFL, CEFZ, BDCL, LBDC, MORL, MRRL, LRET, MLPQ, HOML, MLPZ, LMLP and WTID). UBS ETRACs are exchange-traded notes which track and provide monthly payments based on various market indexes.
According to Jake Zamansky, securities fraud attorney, we are investigating whether UBS financial advisors sold these ETRACs to their customers without sufficiently disclosing their risk. These ETRACS were extremely risky and speculative because they make leveraged bets on the volatile market sectors. Zamansky says, UBS financial advisors should not have sold ETRACS to retirees or other conservative investor who needed income or principal preservation.
During March 2020, the COVID-19 pandemic caused the global markets to crash which resulted in mandatory redemption of these ETRACS at losses of 60% or more to investors:
ETRACS Monthly Pay 2xLeveraged U.S. High Dividend Low Volatility ETN (HDLV)
ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN (SMHD)
ETRACS Monthly Pay 2xLeveraged Diversified High Income ETN (DVHL)
ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (CEFL)
ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (CEFZ)
ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index ETN (BDCL)
ETRACS 2xLeveraged Long Wells Fargo Business Development Company ETN (LBDC)
ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL)
ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MRRL)
ETRACS Monthly Pay 2xLeveraged MSCI US REIT INDEX ETN (LRET)
ETRACS 2x Monthly Leveraged Alerian MLP Infrastructure Index ETN (MLPQ)
ETRACS Monthly Reset 2xLeveraged ISE Exclusively Homebuilders ETN (HOML)
ETRACS 2xMonthly Leveraged S&P MLP Index ETN Series B (MLPZ)
ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN (LMLP)
ETRACS ProShares Daily 3x Inverse Crude ETN linked to the Bloomberg WTI Crude Oil Subindex (WTID)
What UBS Customers Can Do
If you have a UBS brokerage account and suffered a loss in these ETRACS, and you wish to have your investment reviewed or to discuss your legal rights, you may, without obligation or cost to you, email [email protected] or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is a leading investment fraud law firm with a practice focused on securities, hedge fund and ERISA class action litigation, and FINRA securities arbitration. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.
50 Broadway – 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414