United States Sues UBS to Recover Civil Penalties for Fraud in the Sale of RMBS Securities

United States Sues UBS to Recover Civil Penalties for Fraud in the Sale of RMBS Securities

By Daniel Edstrom
DTC Systems, Inc.

November 8, 2018

Today the United States filed a civil complaint against UBS AG and several of its United States affiliates (together, “UBS”) in federal court for the Eastern District of New York.

The complaint alleges UBS defrauded investors contributing to the 2008 financial crisis, “which resulted in lasting economic harm to the nation and unnecessary suffering for Americans”.

The complaint alleges investors “suffered catastrophic losses”. Further, the complaint alleges “These practices resulted in massive losses to investors, harmed homeowners, and ultimately jeopardized the banking system.”

The complaint alleges that UBS’ fraudulent actions were based on “mail fraud, wire fraud, bank fraud, and other misconduct.”

As detailed in the complaint, UBS knowingly misrepresented key characteristics  of the loans, thereby concealing the fact that the loans were much riskier and much more likely to default than UBS represented.

While the complaint seems to allege that the UBS conduct “harmed homeowners”, it is apparent from the massive number of foreclosures that conduct alleged against UBS also resulted in catastrophic losses for homeowners.

Included in the tables filed with the complaint are many of the alleged false representations, including the following (not all inclusive):

False Representation That All Loans Complied With Underwriting Guidelines

False Representation That All Loans Applied With Applicable Law:

“The transferor will represent that as of the closing date, each loan is in compliance with applicable federal and state laws and regulations.” (S-25)
“All loans submitted for consideration are subject to review for compliance with UBS Home Finance guidelines, the applicable product matrix, as well as with local, state, and federal mortgage lending requirements.” (S-32)

So the allegation is that the underlying loans had no underwriting and did not comply with applicable laws even though UBS was putting forth representations to the public and/or investors that the loans were appropriately subject to underwriting standards and that the loans did comply with applicable laws.

Here is the link to the U.S. Attorney’s Office for the Eastern District of New York press release from November 8, 2018: U.S. Attorney’s Office for the Eastern District of New York Press Release

Here is the link to the U.S. Department of Justice press release from November 8, 2018: Department of Justice Press Release

Here is the complaint filed in the Eastern District of New York on November 8, 2018: U.S. v. UBS Securities LLC, et al


Author: dmedstrom

Reverse Engineering and Failure Analysis - Reverse Engineering Wall Street

55 thoughts on “United States Sues UBS to Recover Civil Penalties for Fraud in the Sale of RMBS Securities”

  1. Crowd 1 is a legal international company from Sweden, with European registration, offices in different countries and head office in Madrid. A new company in which over half a year more than 6 million people have registered. Profit comes from the shares of the world’s largest gaming channels. Gambling, mobile share with us 50%. Passive and active income

    Address: ImpactCrowd Technology SL
    Calle Velazquez 86, Portal A, 1 derecha 28006, Madrid, Spain
    Taxpayer identification number (NIF): B88429436

    Crowd 1 has created a unique system for the world’s largest promotion of online services, playgrounds, travel, advertising services, various useful applications and much more. We have opened access to ALL PEOPLE so that YOU can use a system that only a few years ago was only available to multi-millionaires. [url=https://crowd1.com/signup/nvizit][b]Welcome to our club![/b][/url]


    This package gives you the opportunity to have 2 types of income : active and passive. If you are a passive partner, you will receive weekly shares from the company for free, starting from 2.5 euros and higher. you will only need to log in to your account and collect them. And quarterly from September 2020, you will receive dividends on your accumulated shares. If you are an active partner, you can receive your income daily, monthly and quarterly!

    More: If you are active and invite 4 people from the moment of registration and within 14 days, you can get a reward from 125 € to 3000 € as a gift! [url=https://crowd1.com/signup/nvizit][b]To the CROWD 1 website[/b][/url]


    [url=https://crowd1.com/signup/nvizit]как заработать миллион[/url]
    [url=https://crowd1.com/signup/nvizit]халява в интернете[/url]
    [url=https://crowd1.com/signup/nvizit]FREE REGISTRATION[/url]
    [url=https://www.gridgroup.site/]стоимость недвижимости[/url]

  2. I’ve tried out every thing do you know what to do?=(


Comments are closed.