In a recent development, UBS Financial Services Inc. and its financial advisor, Randall Berns, are facing serious allegations from a client who claims to have been misled and subjected to improper financial practices. The client alleges that Berns delayed his rollover for three and a half months, lied about capital gains to prevent him from moving funds to another company, and opened unnecessary accounts to charge yearly and transfer fees, which the client describes as churning.
The complaint, which was initially filed on March 12, 2020, and amended on May 15th, 2023, also includes allegations of misappropriation of funds and failure to act in the client’s best interest. The client, who is the beneficiary of a deceased UBS client, argues that Berns‘ actions were not in line with the investment strategy and conversations that had taken place between Berns and the deceased client.
UBS Financial Services Inc., a prominent financial institution with a presence in multiple states, including Minnesota, where Randall Berns has been registered as a broker since August 12, 2006, according to his CRD, is now under scrutiny as a result of these allegations. The case has drawn attention to the importance of transparency, integrity, and fiduciary responsibility in the financial advisory industry. Investment fraud and bad advice from financial advisors can have devastating consequences for investors, as highlighted by this case.
Understanding the Allegations and FINRA Rule Violations
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The allegations against Randall Berns and UBS Financial Services Inc. revolve around several key issues that violate FINRA (Financial Industry Regulatory Authority) rules and regulations. FINRA is a self-regulatory organization that oversees the conduct of financial advisors and firms to protect investors and maintain market integrity.
Delayed Rollover and Misrepresentation
The client alleges that Berns delayed the rollover of funds for three and a half months and lied about capital gains to prevent the client from moving their investments to another company. This conduct violates FINRA Rule 2010, which requires financial advisors to observe high standards of commercial honor and just and equitable principles of trade.
Churning and Unnecessary Accounts
The client also accuses Berns of opening unnecessary accounts and charging yearly and transfer fees, which the client describes as churning. Churning refers to the excessive buying and selling of securities in a client’s account by a broker to generate commissions. This practice is prohibited under FINRA Rule 2111, which requires financial advisors to have a reasonable basis for believing that their recommendations are suitable for the client based on the client’s investment profile.
The Importance for Investors
The allegations against Randall Berns and UBS Financial Services Inc. underscore the significance of investor protection and the need for individuals to be vigilant when entrusting their financial well-being to advisors and firms. Investors have the right to expect that their financial advisors will act in their best interests, provide transparent and accurate information, and refrain from engaging in unethical or illegal practices.
Protecting Investments and Recovering Losses
Investors who suspect that they have been victims of financial advisor misconduct, such as churning, misrepresentation, or misappropriation of funds, have the right to seek legal recourse and recover their losses. FINRA arbitration provides a platform for investors to resolve disputes with financial advisors and firms, offering a fair and efficient process for seeking compensation.
Seeking Legal Assistance
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Randall Berns and UBS Financial Services Inc. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses resulting from financial advisor misconduct.
Investors who believe they may have been affected by the alleged misconduct of Randall Berns or any other financial advisor are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a contingency fee basis, meaning clients only pay if a recovery is made. To discuss your case with an experienced investment fraud attorney, call Haselkorn & Thibaut‘s toll-free number at 1-888-885-7162 .
Red Flags and Investor Vigilance
The allegations against Randall Berns serve as a reminder for investors to be aware of potential red flags when working with financial advisors. These may include:
- Unauthorized or excessive trading in an account
- Misrepresentation or omission of material information
- Recommendations that are inconsistent with the client’s investment objectives and risk tolerance
- Failure to provide timely and accurate account statements and disclosures
By staying informed, asking questions, and regularly reviewing their accounts, investors can help protect themselves from financial advisor misconduct and take prompt action if they suspect wrongdoing.
The Role of Regulators and Legal Advocates
Cases like the one involving Randall Berns and UBS Financial Services Inc. highlight the critical role played by regulators, such as FINRA, and legal advocates, like Haselkorn & Thibaut, in safeguarding investor rights and holding financial advisors and firms accountable for their actions. By working together to expose misconduct, pursue justice, and recover losses, these entities help maintain the integrity of the financial markets and protect the interests of individual investors.
As the investigation into the allegations against Randall Berns and UBS Financial Services Inc. unfolds, it serves as a powerful reminder of the importance of transparency, integrity, and fiduciary responsibility in the financial advisory industry. Investors who have been affected by misconduct have the right to seek justice and recover their losses, and firms like Haselkorn & Thibaut stand ready to provide the legal expertise and support needed to navigate this complex process.
