Former UBS broker Frederick Maximilian Kort (aka F. Maximilan Kort and Maximilian F. Kort), who is also an registered investment adviser, is the subject of two pending customer disputes initiated against him on the allegations of misrepresenting and recommending unsuitable investments according to an investigation by attorney Alan Rosca.
Investor lawyer Alan Rosca of Rosca Scarlato LLC law firm is investigating conduct related to the customer disputes instituted against former broker Frederick Kort on the allegation of misrepresenting and recommending unsuitable investments.
Frederick Maximilian Kort was last in the employment of UBS Financial Services, operating out of a Chicago based office. He was registered with the Financial Industry Regulatory Authority (FINRA) member firm between August 2007 and June 2018 and was in the employment of the firm when he carried out the alleged conducts leading to the pending customer dispute.
Starting May 2018, Frederick M. Kort is an investment adviser with IHT Wealth Management in Chicago, Illinois.
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Frederick Kort Is the Subject Two Pending Customer Dispute
The Rosca Scarlato investor lawyer reviewed publicly available information and found that Frederick Kort has two pending customer disputes as of the date of this article, according to the reports on his FINRA brokercheck page.
In a dispute, filed by F. Maximilian Kort‘s client through their counsel alleged that between early 2017 and the current period in which the dispute was initiated, the investment adviser made misrepresentations and recommended unsuitable investments in respect to his recommendation to invest in and hold an options overlay strategy. The client in this dispute is seeking to recover $455,000 in damages.
The second pending customer dispute was instituted in July 2019 on very similar allegations. The client is alleging that Maximilian F. Kort made unsuitable investment recommendations and misrepresentations with respect to their recommendations to invest in and hold an options overlay strategy. The client who alleges that the allegations happened on investments between the period of mid-2017 and the current time the dispute was initiated, is seeking to recover $343,541.65 in damages.
UBS Yield Enhancement Strategy (YES Program)
The customer disputes mentioned above were based on the allegations of investments into an options overlay strategy. These investments could refer to investments into the UBS Yield Enhancement Strategy (YES Program). Generally speaking, The YES program investment strategy offered by UBS Financial Services was marketed by the firm to be market neutral and not correlated to the volatility and risks associated with the stocks and bonds market.
The marketing materials further stated that the investors who invest a certain minimum amount of their portfolio, called a Mandate, in the programs should expect increased returns. The Mandate was typically a sum of $2 million or more as the program was marketed to high net worth investors. The Yes Program was said to be primarily based on an option trading strategy called the “Iron Condor”.
The strategy basically involves the buying and selling of pairs of put and call options on the S & P 500 index. The participants in the YES program first suffered substantial losses in 2018 and 2019. The losses which at times were as high as 12% to 14% were incurred when the S & P 500 index dropped more than anticipated and the losses have been increasing.
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The investor lawyers at Rosca Scarlato LLC law firm are currently representing UBS YES investors who have lost money through the investment strategy. In some of the cases the investors are alleging that the marketing material omitted important disclosures relating to the actual risks surrounding the program and the trading strategy employed.
The firm in its investigation is also seeking to discover whether the investment was suitable for the investors and whether the investor’s portfolio was over concentrated or not among others. Visit the page for UBS YES Investor Center for case updates and more details.
Frederick Kort Was Discharged by UBS Financial Services
According to the reports on the brokercheck page, the Frederick M. Kort was discharged by his former employer, UBS Financial Services for two major allegations. The firm alleged that he affixed a client signature onto an Option agreement with the intent of submitting such form to the firm for processing.
The firm also alleged that Frederick Maximilian Kort also attempted an unauthorized computer download of both firm proprietary and client-identifying information. When that was not successful, he was alleged to have attempted the hard copy printing of the same information and removal from the branch office premise.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Securities Lawyer Investigating Potential Options for Kort Investors
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to Frederick Kort’s pending customer disputes on the allegations of misrepresentation and unsuitable investments recommendations, possibly in relation to the UBS YES Program.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to Frederick Maximilian Kort’s pending customer disputes on the allegations of misrepresentation and unsuitable investments recommendation possibly in relation to the UBS YES Program, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.