UBS Sues Fired Broker David Fagenson for Not Paying FINRA Arbitration Award

David Fagenson (CRD#: 1652012) is currently employed as a broker at Newbridge Securities Corporation in Boca Raton. Prior to joining this brokerage firm, Mr. Fagenson was associated with UBS Financial Services in Palm Beach, Florida (2010 to 2016).

In September of 2016, David Fagenson was terminated by UBS Financial Services following allegations that he violated the firm’s internal policy in exercising discretion in a customer’s account.

On October 17th, 2018, UBS Financial Services filed a lawsuit against David Fagenson alleging that he failed to pay to a FINRA arbitration award. AdvisorHub reports that UBS is seeking $880,143.00 in order to satisfy the outstanding balance that it contends that Mr. Fagenson owes the firm.

Allegations of Misconduct: Former UBS Financial Services Broker David Fagenson

In October of 2017, UBS Financial Services brought a claim against its former broker David Fagenson before a FINRA arbitration panel in Boca Raton, Florida. Among other things, UBS alleged that Mr. Fagenson breached his employment contract in relation to nine promissory notes. Upon hearing the case, the Panel issued a FINRA arbitration award of $880,143.00 in favor of UBS.

Under FINRA Rule 9554, registered representatives have a duty to comply with the terms of FINRA arbitration awards. If a broker fails to do so, they could face enforcement action, including potential suspension from the industry or even cancellation of their securities registration.

Notably, multiple investors have also filed complaints against Mr. Fagenson. Dating back to his time at UBS Financial Services, one investor alleges that this broker made unauthorized transactions and is seeking $85,000 in compensation. Another UBS customer alleges that he was overcharged by Mr. Fagenson and is seeking $100,000 in compensation. Both of these complaints are currently listed by FINRA as ‘pending’.

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