Gerard Joseph Costello of New York, New York, a stockbroker currently registered with UBS Financial Services Inc., is the subject of a customer initiated investment related civil action in which investors collectively sought $1,200,000,000.00 in damages founded on allegations of Costello’s failure to disclose risks concerning Yield Enhancement Strategy (YES) when Costello was registered with UBS Financial Services. Civil Action No. 1:21-cv-10361 (Dec. 10, 2021). According to the lawsuit, investors were not provided with critical investment information, including past performance and conflicts of interest relating to the strategy.
FINRA Public Disclosure shows that Costello has been identified in eight more customer initiated investment related disputes containing accusations of his activities while employed by UBS Financial Services. On April 9, 2018, a customer filed an investment related complaint concerning Costello’s conduct in which the customer requested more than $5,000.00 in compensatory damages based upon allegations of the customer’s investments failing to align with the customer’s risk tolerance.
Costello is also referenced in a customer initiated investment related written complaint on December 26, 2018, where the customer sought compensatory damages supported by accusations of the customer being made to believe that they were investing in a low-risk product. The customer was allegedly invested in an aggressive options strategy that resulted in losses. The complaint alleges that insufficient information was provided to the customer regarding the past performance of the strategy.
Costello is also identified in a customer initiated investment related FINRA securities arbitration claim where the customer sought $350,000.00 in damages supported by allegations of poor investment recommendations by Costello regarding options trades for the customer’s account as part of an overlay strategy. FINRA Arbitration No. 20-01201 (April 30, 2020). According to the claim, misrepresentations were made by Costello at the time that the strategy was recommended to the customer.
Costello is the subject of a different customer initiated investment related FINRA securities arbitration claim in which the customer sought $56,000.00 in damages founded on accusations that misrepresentations steered the customer into the options overlay strategy, and Costello’s recommendation to hold the strategy since 2017 resulted in damages. FINRA Arbitration No. 20-01973 (July 1, 2020).
On October 6, 2020, a different customer initiated investment related FINRA securities arbitration claim regarding Costello’s activities was resolved for $165,000.00 in damages founded on allegations of an options overlay strategy that was misrepresented by Costello between 2017 and 2020 while he was associated with UBS Financial Services. FINRA Arbitration No. 19-02295 (October 6, 2020). The claim alleges that Costello provided an unsuitable recommendation to get and stay invested in the options strategy.
Another customer filed an investment related FINRA securities arbitration claim involving Costello’s conduct in which the customer requested $890,000.00 in damages based upon accusations of misrepresentation and unsuitable advice by Costello regarding an options overlay strategy at UBS Financial Services. FINRA Arbitration No. 20-01035 (August 20, 2021).
Costello is also referenced in a customer initiated investment related FINRA securities arbitration claim where the customer was awarded $50,000.00 in damages based upon UBS Financial Services being found liable for sales practice violations relating to Yield Enhancement Strategy. FINRA Arbitration No. 20-02764 (October 14, 2021). The Statement of Claim alleges that UBS Financial Services failed to supervise, violated Texas Securities Act, violated Texas Consumer Protection Act, and defrauded the customer concerning the Yield Enhancement Strategy. Allegations also included breach of fiduciary duty and breach of contract, resulting in damages.
Costello has been registered with UBS Financial Services since November 20, 2015, as both a stockbroker and investment adviser representative.
