October 26, 2018 Comments (0) Blog

UBS Faces Lawsuit over Failure to Supervise Former Broker, Alex G. Herrera

Alex G. Herrera
(Last Updated On: October 26, 2018)

Alex G. Herrera – UBS Financial – Coral Gables, FL

According to a press release, UBS Financial Services is facing a claim that it failed to supervise one of its former brokers, Alex G. Herrera who allegedly spent a client’s money to build a vacation home for himself.

Alex G. Herrera, of Coral Gables, Fla., allegedly misappropriated the funds of an Argentinian widow and her three children, according to the press release. Herrera allegedly used the client’s money to buy an unfinished villa in Coral Gables, finish construction, sell it and use the profits to buy property in North Carolina and build a vacation home for himself there, according to the allegations.

The claim also accuses UBS directly of charging the widow and her children more than $500,000 in commissions and fees without showing any investment returns or profits during a strong market, according to the press release.

According to his FINRA BrokerCheck report, Herrera was registered with UBS from March 2012 until May 2018. FINRA reportedly barred Herrera in August for failing to furnish requested documents related to its investigation into Herrera’s possible unreported outside business and private securities transactions. He has one pending customer complaint on his broker report alleging he used his client’s money to buy a vacation home.

Failure to Supervise

The White Law Group continues its investigation of potential claims involving Alex G. Herrera and the liability his former employers may have for failure to properly supervise his alleged activities.

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.

If you have invested with Alex G. Herrera and are concerned about your investments, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call our offices at 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

 

 

 

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