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September 27, 2021 at 05:07 PM
What You Need to Know
- A FINRA arb panel has ordered an ex-UBS advisor/broker to pay his former firm $541,722.
- UBS alleged its rep never repaid 11 promissory notes as required when he resigned.
- The rep denied the allegations and countered UBS' allegations with some of his own.
A Financial Industry Regulatory Authority arbitration panel on Wednesday ordered an ex-UBS advisor to pay his former firm $541,722 in compensatory damages for failing to repay 11 promissory notes as required when he resigned from UBS.
In its initial statement of claim, UBS had requested that its ex-rep, Jason Lee Seifert, repay it for the principal amounts due and owed for the notes in the amount of $514,722, plus interest, late fees, and all costs, fees, and expenses in connection with the arbitration, including attorneys’ fees, and any additional relief the arbitration panel deemed appropriate, according to the FINRA arbitration award document published last week.
At a hearing, UBS requested $582,257 in damages for the principal and interest on the promissory notes, $120,000 in attorneys’ fees, and that all forum fees be assessed against Seifert.
In response, Seifert requested $3.55 million in compensatory damages, $764,000 in exemplary damages, and that all forum fees be assessed against UBS.
Seifert denied UBS’ allegations and asserted various affirmative defenses and asserted the following causes of action: fraudulent inducement, constructive fraud, promissory estoppel, negligent misrepresentation, and breach of contract — duty of good faith and fair dealing.
Seifert alleged UBS made “substantial errors and misrepresentations” regarding FINRA protocol before his transition from his employment before UBS to his employment with UBS, which resulted in damage to his client relationships, reputation, income, and ability to succeed while employed by UBS.
