**Title:** UBS Client Can Sue Broker Over Alleged Affair and Fraud
**Meta Description:** A New York judge allows a UBS client to sue his broker for alleged misconduct involving his wife, while the firm is not liable.
**URL Slug:** ub-client-sues-broker-affair-fraud
**Headline:** UBS Client Granted Right to Sue Broker Over Alleged Affair and Financial Misconduct
In a significant legal ruling, a New York judge has determined that a UBS Group AG client can pursue a lawsuit against his broker, while the Swiss financial institution itself is not liable. Richard Kallman has accused his wealth adviser, Ira Walker, of engaging in an affair with his wife and attempting to manipulate family funds. Kallman claims that Walker, as a managing director at UBS, conspired with his wife to transfer the family trust fund to UBS and subsequently disburse substantial amounts from it.
Kallman alleges that Walker intervened in the couple’s divorce proceedings, demanding millions on behalf of his wife. He is seeking $10 million in damages from both UBS and Walker, who has publicly denied the allegations, labeling the case as “factually baseless.”
In a ruling issued on Thursday, Judge Lyle Frank stated that many of Kallman’s claims must be resolved through arbitration, as stipulated in the agreement he accepted when he and his wife, Kineret, moved their trust fund to UBS. However, the judge allowed a claim of intentional infliction of emotional distress against Walker and Kineret to proceed to trial.
UBS has refrained from commenting on the ruling, while both Walker and Kineret Kallman have not responded to requests for comment. The case highlights ongoing concerns within the financial industry regarding the complications that arise when brokers or investment advisers develop personal relationships with clients. Despite numerous high-profile legal battles involving wealthy families and major firms like Morgan Stanley and JPMorgan Chase, there are currently no explicit regulations governing such personal ties in the industry.
Alan Futerfas, Kallman’s attorney, expressed satisfaction that the case will be heard in an open courtroom, emphasizing their eagerness to prove the allegations made in their complaint.
**FAQ Section:**
**Q: What are the main allegations against the UBS broker?**
A: The UBS broker, Ira Walker, is accused of having an affair with the client’s wife and attempting to manipulate family funds during the couple’s divorce proceedings.