UBS Advisor Gerard Costello: $900K Options Overlay Complaint

A recent investor complaint against New York City financial advisor Gerard Costello (CRD# 1551511) alleges that his investment advice concerning an options overlay strategy resulted in six-figure losses. Financial Industry Regulatory Authority records show that he is a broker and an investment advisor with UBS Financial Services.

Mr. Costello’s BrokerCheck report discloses multiple investor complaints. The most recent, filed in September 2022, alleges that as a representative of UBS Financial Services, he made misrepresentations and unsuitable recommendations to invest in and hold an options overlay strategy. The pending complaint alleges damages of $900,000.

A second investor complaint, filed in 2021, alleges that UBS Financial Services failed to disclose the risks and alleged conflicts of interest associated with its Yield Enhancement Strategy. The pending complaint, described as “a putative class action,” alleges damages of $1.2 billion.

Two other disclosures on Mr. Costello’s BrokerCheck report describe complaints alleging misrepresentations and suitability violations connected to an options overlay strategy. Filed in 2019 and 2020, the complaints settled for a total of $490,000. Two other 2020 complaints that alleged misrepresentation, suitability violations, fraud, and other causes of action evolved into arbitration proceedings before a FINRA panel, which issued awards of $50,000 and $468,126.

According to the Financial Industry Regulatory Authority, Gerard Costello holds 23 years of securities industry experience. Based in New York City, he has been a broker and an investment advisor with UBS Financial Services since 2015. His past registrations include Credit Suisse Securities (2003-2015) and Donaldson Lufkin & Jenrette Securities Corporation (1999-2003). His credentials include the passage of three securities industry qualifying examinations: Uniform Combined State Law Examination, or Series 66; Securities Industry Essentials Examination, or SIE; and General Securities Representative Examination, or Series 7. He currently holds 57 state licenses.  (Information current as of February 1, 2023.)

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