Tuesday, January 7, 2020

$2.6 million National Planning Corporation Non-traded REIT and Variable Annuity Award

In January 2020, a FINRA panel in St. Louis, MO ordered National Planning Corporation to pay $2,629,273 in well managed account damages, punitive damages and costs. You can read the award here. Dr. McCann testified on liability and damages over NPC's sale of non-traded REITs and variable annuities.

In Re National Prescription Opiate Litigation, MDL No. 2804 ARCOS Craig McCann Expert Report

Craig McCann has filed several expert reports in litigation arising out of the opioid epidemic. Judge Polster has made Craig’s redacted expert export in the Cuyahoga County and Summit County case publicly available. It can be downloaded here.

Wednesday, October 2, 2019

UBS’s Yield Enhancement Strategy (“YES”) Returns - and then the Losses – Were Caused by Equity Market Exposure

By Craig McCann, Regina Meng, and Edward O'Neal

UBS marketed YES as market-neutral based on a combination of four options is sometimes referred to as an “Iron Condor”. UBS accounts subjected to YES treatment suffered losses of 12% to 14% in December 2018 when the S&P 500 dropped 9.2% because the overlay was more than 100%.

In this paper the authors we explain the option basics necessary to understand the YES strategy and illustrate how UBS actually implemented the strategy with predictably disastrous results. They also present how UBS described the strategy in its marketing materials. Research paper can be downloaded here

Monday, August 19, 2019

$5.88 Million Blanco v UBS of Puerto Rico Award

In August 2019, a FINRA arbitration panel in San Juan, PR ordered UBS Financial Services and UBS Financial Services of Puerto Rico to pay $4,250,000 in compensatory damages, plus interest of $1,460,937 and costs of $170,000. You can read the award here. Dr. McCann testified on liability and damages over UBS Puerto Rico's sale of UBS PR closed end funds and individual Puerto Rico municipal bonds.