UBS Hires $3-Million J.P. Morgan Advisors Duo in NYC
A New York City duo managing $1.4 billion in client assets at J.P. Morgan Advisors left Wednesday to join UBS Wealth Management USA, according to registration records and a source familiar with the practice.
Neither of the brokers returned a request for comment at their UBS office, which is just a block north from their old J.P. Morgan branch on Manhattan’s Park Avenue.
A spokesperson for J.P. Morgan declined to comment on the move. The firm yesterday said it had replaced its chief executive, tapping former Merrill executive Phil Sieg to lead the group, which includes around 450 brokers and itself has been aiming to hire around 50 high-end teams per year.
Hoffman began his brokerage career in 1994 with Cantor Fitzgerald Securities, moved to Morgan Stanley in 1999 and worked with Oppenheimer & Co. from 2004 to 2011 until he joined J.P. Morgan Securities, according to his BrokerCheck report.
In a timely expungement, Hoffman last month successfully cleared from his BrokerCheck record a pandemic-related settlement that one arbitrator described as a “strange, if not unique” situation involving a longtime customer Hoffman had inherited from his father’s practice, according to an arbitration award dated March 17.
The customer had brought a complaint for a $39,333.76 loss in a bond fund as the market crashed in February and March last year, and the bank had settled the claim for the full amount without consulting Hoffman, the arbitrator said. It appeared the bank had paid off the customer, who had been involved in a payday loan controversy in Arizona, to encourage them to take their account to another firm, according to the award.
“This was not the normal procedure as losses in investments are not usually reimbursed and the Claimant maintains that he told the customer, an experienced investor, of the risks,” the arbitrator wrote in concluding the claim was “erroneous” and should be cleared.
Hoffman had just one other complaint on his record, a claim from 2004 that sought $2.4 million and settled for $285,000. Hoffman wrote in a statement on BrokerCheck that he and Morgan Stanley “strongly denied” the allegation but the case was settled to avoid time and costs of litigation.
Rappaport, who started his career in 2006 with S.W. Bach & Co., moved to Credit Suisse Securities (USA) later that year and joined J.P. Morgan Securities in 2009, according to his BrokerCheck. The database shows no record of client disputes or other “disclosure” events.
UBS, which exited the Protocol for Broker Recruiting in 2017 after pulling back from veteran broker hiring, has waded back into recruiting in the past 18 months. It last month hired a four-person Merrill Lynch team managing $750 million in client assets in Ohio and a Wells Fargo Advisors team managing $400 million in San Diego.
UBS’s Americas headcount, including a small contingent in Canada and Latin America, fell to 6,305, down a net 48 over the last three months of 2020 and down 244, or 3.7%, from 6,549 in the fourth quarter of 2019.