William Hobby, Former UBS Financial Broker, Hit with 4 Customer Complaints In Last Year

William Hobby has had a total of 24 customer disputes filed against him dating back to 2000

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William David Hobby (CRD# 2240076) is a previously registered broker and investment advisor. From 2012 to 2018, Mr. Hobby was a registered representative with UBS Financial Services, based in Atlanta, Georgia. Since January 2018, Mr. Hobby has had 4 customer disputes filed against him that, to date, have paid out over $400,000 in settlements.

Mr. Hobby’s BrokerCheck profile lists a total of 25 disclosures, including one employment separation. In September 2018, Mr. Hobby was discharged from his position with UBS Financial following allegations that he exercised discretion in a client account without authorization, that he failed to escalate the same client’s complaint, and that he worked against the firm’s interests by assisting that client in efforts to obtain a settlement from the firm.

The other 24 disclosures are customers disputes, filed between December 12, 2000, and April 12, 2019. Three of the disputes were denied, 20 were settled, and the most recent one remains pending.

Fourteen of the 19 complaints filed between 2001 and 2004 were filed by claimants who were employees or participants in the WorldCom stock option plan who exercised options and held the stock on margin. When WorldCom became insolvent, these employees and participants were negatively affected. In each of those 14 complaints, Mr. Hobby was one of several financial advisors named but not asked to participate or contribute to the settlements, which were paid by Citigroup Global Markets.

So far, Mr. Hobby himself has paid out nearly $650,000 in total settlement amounts since 2018 alone. A summary of the disputes and requested damage amounts is below, starting with the most recent:

• April 12, 2019: Alleges that Mr. Hobby misrepresented unsuitable investments, changed client’s risk tolerance without authorization, and exercised discretion without written authorization. This complaint requests damages of approximately $788,000 and is currently pending.
• October 9, 2018: Alleged that between August 2016 and October 2018, the client was mislabeled as “aggressive investor,” causing her to suffer losses she could not afford. The matter was settled for $24,000.
• May 16, 2018: Alleged that client was placed in unsuitable securities despite the client’s risk tolerance and investment objectives, including a reclassification as an “aggressive investor” without the client’s permission, and that the client was told he was invested in a “conservative” portfolio. The matter was settled for $80,000.
• January 12, 2018: Alleged that between September 2014 and February 2018, Mr. Hobby recommended unsuitable and risky investments and executed excessive transactions in his discretion without written authorization. The matter was settled for $350,000.
• October 25, 2004: Alleged improper handling of client’s account between 1999 through 2000. Mr. Hobby was dismissed with prejudice from all claims, which were ultimately settled for $35,000 without his involvement.
• September 13, 2004: Alleged improper handling of client’s account between 1998 through 2002. Mr. Hobby was dismissed with prejudice from all claims, which were ultimately settled for $72,000 without his involvement.
• June 22, 2004: Alleged improper handling of client’s account between 2000 and 2002. Mr. Hobby was dismissed with prejudice from all claims, which were ultimately settled for $25,000 without his involvement.
• April 12, 2004: Alleged improper handling of client’s account between 1999 through 2000. Mr. Hobby was dismissed with prejudice from all claims, which were ultimately settled for $90,000 without his involvement.
• February 20, 2004: Alleged that Mr. Hobby failed to follow instructions with respect to investments. The matter was settled for approximately $8,371.
• December 12, 2003: Alleged improper handling of client’s account between 1998 through 2001. Mr. Hobby was dismissed with prejudice from all claims, which were ultimately settled for $125,000 without his involvement.
• November 3, 2003: Alleged unsuitable investments between October 1999 and October 2003. The claim was denied.
• December 19, 2002: Alleged improper handling of client’s account between 1998 through 2001. The client agreed to release the claims against Mr. Hobby and he was not asked to contribute to the settlement of $155,000.
• December 16, 2002: Alleged improper handling of client’s account between June 1999 through August 2000. The client agreed to release the claims against Mr. Hobby, who did not contribute to the final settlement of $120,000.
• June 25, 2002: Alleged improper handling of client’s accounts between July 1999 through April 2002. The client agreed to withdraw and dismiss with prejudice all claims against Mr. Hobby, which were eventually settled for $700,000.
• April 23, 2002: Alleged improper handling of client’s accounts between October 1999 through 2002. The client agreed to withdraw and dismiss with prejudice all claims against Mr. Hobby, which were eventually settled for $83,000.
• April 19, 2002: Alleged improper handling of client’s accounts between April 2000 through December 2000. The client agreed to withdraw and dismiss with prejudice all claims against Mr. Hobby, which were eventually settled for $45,000.
• April 19, 2002: Alleged improper handling of client’s account between June 1999 through March 2001. The disclosure notes that Mr. Hobby does not recall making investment recommendations to the client. The matter was ultimately settled for $98,000.
• December 7, 2001: Alleged that client did not authorize the use of margin to make purchases in his account. The claim was denied.
• October 5, 2001: Alleged improper handling of client’s account between May 1999 through August 2001. The claims against Mr. Hobby were dismissed with prejudice and he was not involved in the ultimate settlement for $1,600,000.
• August 24, 2001: Alleged improper handling of client’s account between August 1999 through December 2000. The matter was ultimately settled for $650,000 without Mr. Hobby’s involvement.
• May 31, 2001: Alleged improper handling of client accounts between April 2000 through September 2000. The matter was ultimately settled without Mr. Hobby’s involvement for $600,000.
• February 12, 2001: Alleged that Mr. Hobby made unsuitable investment strategy recommendations and failed to disclose risks associated with margin use between 1999 and 2000. The matter was settled for $190,000.
• January 30, 2001: Alleged that Mr. Hobby should have advised the client to sell his WorldCom stock prior to its insolvency. Mr. Hobby was not asked to contribute to the final settlement amount of $175,000.
• December 12, 2000: Alleged issues with the suitability of handling of client’s accounts. The claim was denied.

Prior to his registration with UBS Financial, Mr. Hobby was registered with Morgan Stanley (2009–2012) and Citigroup Global Markets (1992–2008).

Jeffrey R. Sonn is a securities fraud lawyer with more than three decades of successful experience representing investors nationwide. If you suffered illegitimate investment losses with William Hobby, Mr. Sonn can help. Contact our law firm today for a free case evaluation.