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Ex-UBS Rep Fights Back Over Million-dollar Promissory Note Award

December 18, 2018

A former UBS advisor ordered to pay back the firm $1.1 million on a promissory note is fighting back, according to FA-IQ sister publication FundFire.

Anthony Mazzo worked in the wirehouse’s Boca Raton, Fla. office from 2011 to 2016, when he joined BB&T Securities, according to Finra records cited by the publication.

In October, a Finra panel ruled Mazzo owed UBS $1.1 million on the note, FundFire writes. Now, Mazzo claims the panel wasn’t appointed in line with the industry self-regulator’s own procedures, according to the publication.

Mazzo claims Steven Montesi, one of the three Finra arbitrators on the panel, had misrepresented himself because he didn’t disclose his role as a public arbitrator in other arbitrations, FundFire writes.

Furthermore, Mazzo alleges the promissory note couldn’t be legally enforced because it lacked appropriate tax stamps, according to the publication. Finally, Mazzo says UBS Credit Corp. isn’t a Finra member and shouldn’t have been allowed in the arbitration, but the panel nonetheless permitted it, FundFire writes.

Mazzo’s petition is a long shot for several reasons, lawyers tell the publication. The Federal Arbitration Act sets a policy favoring arbitration, Roman Sankovych, an associate within the securities and employment practice of Eccleston Law, tells the publication.

Last week UBS was able to remove the case from Florida state court to the U.S. Court of Appeals for the Eleventh Judicial Circuit — which Sankovych says is “rigid,” meaning it’s “almost impossible to overturn an arbitration award” there, he tells FundFire.

Finra

The publication wasn’t able to contact Montesi while Mazzo referred FundFire’s request for comment to lawyer Arthur Koski of the Law Offices of Arthur C. Koski, who didn’t respond to its requests for comment.

UBS declined comment to the publication.

By Alex Padalka
  • To read the FundFire article cited in this story, click here if you have a paid subscription.