Tag Archives: Unauthorized Transaction

Attention Investors of Richard Niemann, UBS

Investors of Richard Niemann, a securities broker with UBS in Sugar Land, Texas, may have recourse for unauthorized transactions in their accounts.  Please call 1-866-817-0201 to speak to an attorney.

UBSFrom June 2010 through November 2017, while registered through UBS, the Financial Industry Regulatory Authority alleged that Niemann effected approximately 400 discretionary transactions, purchase or sale of stocks without the owner’s approval.  This was done in 13 accounts belonging to 11 customers without UBS having accepted the accounts as discretionary.

Although the customers had given Niemann express or implied authority to exercise discretion in their accounts, none of the customers had provided written authorization for Niemann to exercise discretion. Furthermore, Niemann did not obtain written authorization from UBS to make trades in the accounts on a discretionary basis; indeed, UBS’s written supervisory procedures prohibited representatives from doing so.

Mr. Niemann has been the subject of four prior customer disputes.  This includes a $575,000 settlement to a customer concerning the sale of auction rate securities – though Niemann asserts he was not at fault for this loss and was not name in the ultimate suit.  This level of complaint history likely means that UBS was required to give Niemann heightened supervision in his operations as a UBS broker.  UBS should have detected the unauthorized transactions.