Legal Question in Securities Law in Oregon

My wife and I just got a call from UBS bank/brokerage that they made a mistake over 3 years ago and over-deposited some stock into our account - it was part of a company Stock Participation Plan, so we regularly received stock of varying amounts and didn't notice any error.

So, they have notified us of the mistake - in the amount of ~$12K - and are now asking (rather rudely, considering it was their error) for us to repay the $12K. Problem is that the error was over 3 years ago. We paid (significant) taxes on the transaction, which I don't foresee the govt repaying to us.

Is there any statute of limitations here? If UBS contacted me 3 weeks, or 3 months later, I would send a check. But after 3+ years? After we've paid taxes on the transaction?

Many thanks for some guidance.


Asked on 6/04/10, 2:10 pm

1 Answer from Attorneys
Daniel Bakondi The Law Office of Daniel Bakondi

UBS can bring an action for up to 6 years in finra arbitration, but the statute of limitations may still be an issue because that is shorter. Another issue is latches, that when someone sits on their rights too long, they should be denied recovery. Another is that their own negligence caused their loss, and also cost you a significant loss in increased taxes.

However, even with these and other arguments, you should have representation. I handle securities matters, including finra arbitration, and claims from brokerage firms, including UBS.

If you have proper representation, they may be persuaded to drop their request for little or maybe nothing. This is a really small amount of money and probably not worth the trouble for them if you have a securities attorney who knows how to ward them off.

Please take a look at my website and then send me an email if you would like representation.

Kind Regards,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

http://www.danielbakondi.com

IMPORTANT NOTICE: This communication may contain confidential information, privileged information, or attorney work product. If you are not the intended recipient or received this message in error, any use or distribution of this message is strictly prohibited and unlawful. Please notify the sender immediately, and delete this message. No attorney-client nor confidential relationship is created through this communication. Attorney licensed in California only. Nothing communicated or provided constitutes legal advice nor a legal opinion unless it so specifies and written agreement for attorney services has been entered into. Your issue may be time sensitive and may result in loss of rights if you do not act in time. Thank you.

Read more
Answered on 6/04/10, 8:48 pm


Related Questions & Answers

More Securities Law questions and answers in Oregon