Imagine entrusting your life savings to a financial advisor, hoping it’ll blossom for your retirement, but instead, you face a harrowing loss. This was the case for an investor who put their faith in Mike Persia, a well-established stockbroker currently with UBS Financial Services.
Before moving to UBS, I’d known of Persia’s impressive career at the prestigious Merrill Lynch Pierce Fenner & Smith, offering him a veneer of credibility as he advised clients on their financial portfolios.
The Sting of Financial Loss
In February 2023, I learned about serious allegations from one of Persia’s clients. They reported nearly $900,000 in losses, accusing Persia of pushing them to invest in a dubious options strategy known as Yield Enhancement Strategy (YES), backed by UBS.
YES was pitched as a low-risk way to add extra income to portfolios for wealthy investors. But Persia’s client thought they were signing up for something akin to an “Iron Corridor,” a strategy that’s usually pretty safe. The reality turned out to be much different.
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Contrary to what the client was led to believe, the way UBS handled YES was unbalanced. They bought put options that were riskier than the calls they sold, a detail not made clear to Persia’s client. Knowing this, the client likely would’ve steered clear of the investment.
A Risky Path
With these allegations, I did a background check on Persia’s FINRA CRD number 712234. FINRA requires that complaints and disciplinary actions involving brokers are reported, so they’re no secret to potential clients.
Though Persia has yet to face FINRA penalties, this customer complaint is a huge warning sign about his practices. Brokers must conform to FINRA’s suitability rule, making recommendations that fit a client’s needs. Ignoring this can have serious legal consequences.
Voices Unheard
Unfortunately, reporting misconduct to a brokerage firm often results in silence or outright denial. Firms can easily dismiss a claim and sever the relationship they had with their clients, leaving many investors out in the cold.
For investors, it’s heartbreaking, particularly with complex investments they barely understand. The fallout often means unresolved complaints and shattered financial plans.
Anyone who’s dealt with Mike Persia and suffered from bad investment advice might now question their financial stability and rethink their investment strategies.
If this sounds familiar, remember, all is not lost. There are securities lawyers who specialize in these matters. They can guide you through FINRA arbitration and might help recover your lost funds.
Through my insider’s perspective on the finance world, today’s story illustrates a breach of trust and the resulting financial strain. It underscores the critical need to stay vigilant about your investments. As the saying goes, “Trust, but verify.” In the case of financial advisors, this resonates deeply. So many rely on their guidance, but it’s crucial to remember that not all advisors are faithful stewards of your assets – a painful reality when you consider the financial fact that a significant portion of financial advisors who engage in misconduct are repeat offenders.
Your financial future is too important to leave in the hands of someone who doesn’t have your best interests at heart. For those affected, it’s time to take action and safeguard your investments from those who might mislead you for their gain.
