Options Overlay Complaints Against UBS Rep Michael Sherman

Financial Industry Regulatory Authority (FINRA) records list several customer complaints connected to New York City-based UBS Financial Services broker and adviser Michael Sherman (CRD# 1031880). The complaints detail allegations concerning an options overlay strategy recommended by the firm, and cumulatively settled for more than $700,000. 

A complaint filed in October 2019 alleges that an options overlay strategy investment was misrepresented and unsuitable for the client. The complaint lists the time frame of the investment as “2018-present” and reached a settlement of $200,000. Michael Sherman’s “Broker Comment” on the disclosure states in part: “This is an arbitration against UBS Financial. This filing relates to the Yield Enhancement Strategy operated by a separate UBS team in New York City.” It goes on to state that his office did not manage the investment, and that it was presented to the clients as it was presented to his office by the New York UBS team. 

A June 2019 complaint details similar allegations about the options strategy, specifically that it was misrepresented and not suitable for the customer. This complaint lists the investment’s time frame as “2016-present” and reached a settlement of $335,000. Sherman’s comment on the disclosure reiterates that the complaint concerns an investment operated by a separate team within the firm, and states that he is “not named in the arbitration.” 

A third complaint about the UBS options strategy was filed in June 2019, concerning a time frame from 2016 until the present. This complaint also alleges that the strategy was unsuitable and misrepresented by UBS. It reached a settlement of $200,000. Sherman’s comment on this disclosure also states that the presented the investment to the clients as it was presented to his firm by the UBS team in New York City, and emphasizes that he is “not named in the arbitration.”

Michael Sherman has been registered with UBS Financial Services in New York, New York and Bristol, Maine since 2009. His registration history includes Citigroup Global Markets in Westport, Connecticut, where he was registered from 2003 until 2009; AG Edwards & Sons in Darien, Connecticut, where he was registered from 1998 until 2003; AG Edwards & Sons in St. Louis, Missouri, where he was registered from 1984 until 2003; and Painewebber, where he was registered from 1982 until 1984. He has passed six securities industry examinations, including the Uniform Investment Adviser Law Examination (Series 65), Uniform Securities Agent State Law Examination (Series 63),  and National Commodity Futures Examination (Series 3). His BrokerCheck report lists 24 state securities licenses. (Information current as of May 11, 2022.)

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