And it never ends. Just a week after major banks announced they would make good on some Lehman mini bond losses, it has emerged that a 77-year-old lady lost $32 million buying products from a couple of UBS Private Bankers.
Chan Wai-yee, who used to be a Hang Seng Bank patron, chose to switch to UBS after four decades following the move to the latter of her Prestige investment advisers. Wong Mei-lun and Shirley Cheng, the former managers who handled Chan's investments, left Hang Seng Bank amidst the market boom in 2007. Chan was subsequently invited by Wong to transfer to UBS and was convinced to purchase the UBS OTC Equity Accumulator, according to a report by The Standard.
Having limited stock investments experience and understanding of the English language, Chan was said to have previously engaged in low-risk transactions with the guidance of Wong and Cheng. Upon moving to UBS, Chan's investment strategy was reported to have changed without the client's intention and full comprehension of the risks. In the span of six months, Chan was involved in 25 equity accumulator transactions, nine of which did not materialise.
Left with approximately $200,000 as of 23 July 2009, Chan decided to terminate all investments with UBS and filed a High Court writ in pursuit of damages, costs, interests, and her lost capital.
Do you know more about this story? Contact us anonymously through this link.