On February 28, 2025, a FINRA arbitration panel delivered a staggering $92 million award against UBS Financial Services, Inc. and its broker, Andrew Burish, marking one of the largest investor victories in recent memory. The case, FINRA No. 21-00488, involved nine claimants who alleged that UBS and Burish mismanaged their accounts by recommending an unsuitable, high-risk strategy of shorting Tesla, Inc. stock. This landmark ruling underscores the accountability of financial giants and the potential for investors to recover losses through arbitration. As a securities arbitration law firm that recently secured a $65,000 award for our client in a GWG L Bonds case (FINRA Case No. 24-00004), we are proud to highlight how cases like these demonstrate the power of FINRA arbitration to deliver justice.
Case Background: A Risky Bet Gone Wrong
The claimants filed their initial Statement of Claim on February 22, 2021, accusing UBS and Burish of breach of fiduciary duty, violation of FINRA suitability rules, negligent supervision, and fraud. The allegations centered on a high-stakes trading strategy that involved shorting Tesla stock—a speculative move designed for short-term gains rather than the long-term wealth preservation the claimants sought. According to the amended claim, UBS and Burish pushed this aggressive approach, provided boilerplate paperwork to unsophisticated investors, and encouraged holding these risky positions despite ballooning losses.
Tesla’s stock, known for its volatility, soared in value during the period in question, turning the short positions into a financial disaster for the claimants. At the hearing, the claimants collectively sought over $36 million in actual damages, alongside punitive damages and legal costs. One couple alone requested $26,344,929.36, reflecting the scale of their losses.
UBS and Burish denied the allegations and sought dismissal of the case, expungement of Burish’s CRD records, and reimbursement of costs. However, the three-person arbitration panel sided overwhelmingly with the claimants.
The Award: A Massive Win for Investors
After a grueling process that included nine pre-hearing sessions and 71 hearing sessions spanning May 2023 to December 2024, the panel issued its award on February 27, 2025. The breakdown is jaw-dropping:
- Compensatory Damages: UBS was ordered to pay $17,033,359.50 to Claimants A & B, $792,871.20 to Claimants C & D, $269,064.00 to Claimants E &F, $801,216.00 to Claimants G & H, and $4,163,011.20 to Claimant I. Burish was also held jointly liable, contributing $1,892,595.50, $88,096.80, $29,896.00, $89,024.00, and $462,556.80 to the respective claimants.
- Punitive Damages: UBS faced a punitive damages bill totaling over $69 million, including $51,100,078.50 to Claimants A & B, with additional awards ranging from $807,192.00 to $12,489,033.60 for the other claimants. Burish was assessed $100,000 in punitive damages per claimant group, totaling $500,000. These awards were grounded in Iowa law, citing willful and reckless misconduct.
- Expungement Denied: Burish’s request to clear Occurrence Numbers 2108362 and 2116466 from his CRD records was rejected, ensuring the case remains on his regulatory record.
The total award—$92,178,409.50—sends a clear message: brokerage firms and their advisors can face severe consequences for pushing unsuitable investments.
Why This Matters: Lessons from the Tesla Short Debacle
This case, as reported by AdvisorHub (e.g., “UBS Ordered to Pay $92 Million Over Top Wisconsin Broker’s Big Tesla Short”), highlights critical issues in the financial industry:
- Unsuitability Violations: FINRA Rule 2111 requires brokers to recommend investments aligned with a client’s risk tolerance and goals. Shorting Tesla—a notoriously volatile stock—was a misfit for investors seeking asset protection and multi-generational wealth transfer.
- Breach of Fiduciary Duty: UBS and Burish failed to act in their clients’ best interests, prioritizing aggressive strategies over prudence.
- Supervisory Failures: UBS’s liability reflects a lack of oversight, allowing Burish to pursue a high-risk approach unchecked.
- Punitive Damages as Deterrence: The massive punitive award signals that egregious misconduct won’t be tolerated, aiming to deter similar behavior industry-wide.
Our Experience: Fighting for Investors
As a securities arbitration law firm, we have seen firsthand how FINRA arbitration can level the playing field for investors. Recently, we represented a retail investor in a FINRA arbitration, securing a $65,000 award against the former owner and control person of Integrity Brokerage Services over unsuitable GWG L Bonds. While smaller in scale, that victory mirrors the UBS case—both involved advisors recommending risky investments that devastated their clients. At Iorio Altamirano LLP, we specialize in holding firms like UBS accountable, and cases like these reinforce why our work matters.
What This Means for Investors
The $92 million UBS award is a beacon of hope for investors harmed by broker misconduct. Whether you’ve lost money on Tesla shorts, GWG L Bonds, or other unsuitable investments, FINRA arbitration offers a path to recovery. The arbitration process is designed to deliver binding, enforceable decisions. With punitive damages on the table, it also punishes bad actors and compensates victims beyond their direct losses.
If you suspect your broker or firm mismanaged your investments, time is critical—statutes of limitations apply. Contact an experienced securities arbitration attorney to evaluate your case. The UBS ruling proves that even the biggest firms aren’t immune to accountability.
Conclusion
The FINRA award in Arbitration No. 21-00488 is a watershed moment for investor rights. UBS and Andrew Burish’s $92 million penalty reflects the severe consequences of pushing unsuitable, high-risk strategies like Tesla shorts on unsuspecting clients. For us, it’s a reminder of why we fight for investors—whether it’s a $65,000 win against a small firm or a headline-making victory against a giant like UBS. If you’ve suffered losses due to broker misconduct, don’t hesitate to reach out to Iorio Altamirano LLP. We’re here to help you reclaim what’s yours.
About Iorio Altamirano LLP
Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.
We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover nearly $100 million of investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.
If you have suffered investment losses as a result of broker misconduct or negligence, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (855) 430-4010.