Facts

Barak Raviv filed an arbitration claim against UBS Financial Services Inc. requesting expungement of customer complaints from his Central Registration Depository.

CLAIMANT'S CONTENTIONS: Claimant contended customers purchased auction rate securities, also known as cash alternative investments for twenty years, but in 2008 when the stock market crashed, the ARS became illiquid. Claimant contended customers complained that respondent guaranteed the liquidity, but that claimant did not make such guarantees nor caused the ARS to become illiquid. Claimant contended that respondent repurchased all of the customers securities and therefore the customers faced no financial harm by claimant.

RESPONDENTS' CONTENTIONS: Respondent did not oppose the requested expungement.

Result

The arbitrator recommended expungement after it concluded the customers faced no financial harm by claimant since respondents repurchased all of the customers securities.