Former UBS Broker Dimitrios Michelis Faces $5.8 Million in Pending REIT-Related Claims

Current FINRA BrokerCheck records show that Dimitrios Michelis (CRD# 2920152), a former broker with UBS Financial Services Inc. in New York, is the subject of two significant pending customer disputes. These claims, filed in August 2025, involve staggering requested damages totaling nearly $5.8 million and center on the recommendation and sale of Real Estate Investment Trusts (REITs).

Overview of Pending Disputes

• August 15, 2025 (Claim #1): A client alleges “selling away,” misrepresentation, and unsuitable recommendations occurring between 2012 and 2025. The claim asserts that investments were presented as safe and low-risk but were actually conflicted and harmful. Damages sought: $3,790,000.
• August 15, 2025 (Claim #2): A second client filed a similar claim covering the period from 2016 to 2025, alleging the advisor misrepresented risky investments as low-risk, income-producing opportunities. Damages sought: $2,016,098.

Understanding “Selling Away” and REIT Risks

A critical component of these allegations is “selling away.” This occurs when a broker solicits a client to purchase securities that are not held or approved by their brokerage firm. Because these transactions happen “away” from the firm, they bypass the required supervisory oversight and due diligence meant to protect investors.

Furthermore, these disputes highlight the dangers often associated with Non-Traded REITs. Unlike real estate trusts traded on major exchanges, non-traded REITs frequently suffer from:

• Extreme Illiquidity: Investors are often unable to sell their shares for years, even in financial emergencies.
• Lack of Price Transparency: Values are typically based on periodic appraisals rather than daily market activity, which can hide significant drops in value.
• High Upfront Costs: Sales commissions and organizational fees can swallow 10% to 15% of the initial investment before a single dollar is put into real estate.

Broker History and Firm Liability

Dimitrios Michelis was registered with UBS in New York for 14 years (2011–2025) before moving to Aegis Capital Corp in September 2025.

Under FINRA rules, brokerage firms are legally required to supervise the activities of their registered representatives. If unsuitable recommendations or unauthorized “selling away” occurred over a decade-long period, the firm may be held liable for a failure to maintain adequate supervisory systems.

Protecting Your Financial Future

While a pending dispute represents allegations and is not a finding of wrongdoing, the scale of these claims serves as a warning for other investors. If you were a client of Dimitrios Michelis or UBS and suffered losses in REITs or other alternative investments, you should take immediate action:

1. Preserve Account Records: Keep all statements, marketing materials, and communications related to REIT recommendations.
2. Evaluate Concentration: Check if a disproportionate amount of your net worth was placed in a single real estate product.
3. Seek Independent Review: A professional review of your account can help determine if the investments were suitable for your age, income, and risk tolerance.

Recovery for such losses is typically pursued through FINRA arbitration, a process that allows investors to hold firms accountable for supervisory failures or broker misconduct.