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Regulation and Compliance > Federal Regulation > FINRA

FINRA Dings Ex-UBS Rep for Failing to Repay Promissory Notes

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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.

The three-person arbitration panel denied Seifert’s counterclaim and said he was also liable for and shall pay to UBS interest on the $541,722 at the rate of 2% per annum from 30 days after the award date through and including the date the award is paid in full. The panel did not grant UBS its requested $120,000 in attorneys’ fees. Nor did the panel state why it ruled in favor of UBS.

UBS and Seifert’s attorneys did not immediately respond to requests for comment on Monday.

Seifert was with UBS from 2011-2016, according to his report on FINRA’s BrokerCheck website. After leaving UBS, Seifert did not become registered with FINRA again until he joined Merrill Lynch in 2020, according to BrokerCheck.

Prior to UBS, he was a registered rep with Fifth Third Securities from 2009-2011. He entered the industry as a rep in 2005, when he joined Natcity Investments. He remained with that firm until 2009, according to BrokerCheck.

(Photo: Shutterstock)


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