UBS Told To Pay 76ers Prez $2M Over Lehman Notes

Law360, New York (June 13, 2011, 7:59 PM EDT) -- The Financial Industry Regulatory Authority on Thursday ordered UBS Financial Services Inc. to pay former Philadelphia 76ers President Pat Croce more than $2 million for promoting Lehman Brothers Holdings Inc. notes weeks before the bank’s collapse.

The FINRA arbitration panel in Philadelphia walloped UBS after Croce and his wife accused the bank of securities fraud and breach of fiduciary duty for allegedly touting Lehman’s risky structured products to investors despite knowing that the bank was on the brink.

“After considering the pleadings, the testimony and evidence...
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