Total Losses

When Michaelson agreed with UBS to replace a $1 million home-equity loan he had from another bank, the paperwork was altered after he signed so he received a business loan instead of a personal one, he said in the complaint. That meant UBS could take collateral assets equal to five times the value of his home, according to the lawsuit.

UBS employees promised the V10 notes would give him annual returns of at least 7 percent and as much as 15 percent while preserving his capital, he claimed.

In mid-2010, Michaelson alleged, he received another call from UBS asking him to invest more in V10. After hearing that his investment was up $70,000, he instead decided to close the position and take his profits, at which point he was told he had in fact lost $127,000, he said in the complaint.

Michaelson’s request to sell his V10 investment was delayed as staff at UBS’s Naples office and at its trading desk in New York discussed how much they were willing to give him, according to the complaint. Meanwhile, UBS required Michaelson to repay the loan in full by mid-August 2010, he said.

Michaelson said his total losses from his dealings with UBS, including on V10, amounted to $350,000.

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