Ex-UBS adviser faces $5 million sexual harassment suit

Former intern claims she was offered Christian Louboutin shoes in exchange for sex; adviser and firm say she welcomed advances.
SEP 22, 2014
A former UBS Financial Services Inc. financial adviser is facing a $5 million sexual harassment suit after his relationship with a female intern took an allegedly unwanted romantic turn, according to documents filed last week in the U.S. District Court for the Southern District of New York. In court papers, Samantha Lambui, 24, accuses former UBS financial adviser James Collins of making a number of unwelcome advances, including offering Christian Louboutin shoes and a designer handbag in exchange for sex, during her internship last year with him, according to court documents. (More: 12 BrokerCheck disclosures you have to read to believe) The case also names UBS, Mr. Collins' branch manager at the Melville, N.Y., office, an assistant branch manager, and the director of human resources at the firm. UBS and Mr. Collins denied the discrimination claims, according to a report from the New York State Division of Human Rights, which determined that there was “probable cause” to believe Ms. Lambui's accusations and recommended the case for public hearing. A spokesman for UBS, Gregg Rosenberg, said in an emailed statement that the claims were “without merit.” Ms. Lambui leveled a number of other accusations at Mr. Collins, who was married, according to the complaint, which was first reported by FundFire. In one instance, Mr. Collins had invited her for a lunch in New York City to celebrate her accepting the internship offer. After lunch, he tried to kiss Ms. Lambui but was rejected, according to the complaint. Later, in March, Mr. Collins offered a pair of Christian Louboutin shoes as a “bonus” in exchange for sex if Ms. Lambui met him at a hotel room in New York, but he was again rejected, Ms. Lambui said. She also provided screenshots of text messages in which Mr. Collins had asked her “did u feel anything/attraction towards me on the nyc trip?” UBS and Mr. Collins argue that Ms. Lambui welcomed the advances. They claimed that one night in June of last year, well into the internship, the two went out separately but “exchanged text messages inviting each other to meet up.” They did not meet up, but Ms. Lambui also “transmitted a racy photo” of herself and two friends, according to the report from the New York State Division of Human Rights. Mr. Collins said that she had asked more than once for a financial settlement prior to taking the case to federal court, but that Mr. Collins and UBS rejected her offer. Mr. Collins' attorney, David Gehn, declined to comment on the settlement talks. “It's the free and open court system, and we're prepared to address the allegations in the court and not in the press,” his attorney said. An email to Ms. Lambui was returned by her attorney, Jon-Paul Gabriele, who did not return a follow-up call requesting comment. The two met in the fall of 2012 at Katie Mc's, a bar in Huntington, N.Y., where Ms. Lambui was bartending according to her complaint. Over the course of four months, they developed a “friendly relationship,” and Mr. Collins eventually encouraged her to apply for an internship at UBS. Ms. Lambui first filed a complaint for harassment in June 2013 with UBS. After an investigation, Mr. Collins, who had been with UBS for just over a year, was “involuntarily terminated” on July 16,2013 according to the complaint. He is currently employed by Oppenheimer & Co. Inc., which he joined last September, according to registration records with the Financial Industry Regulatory Authority Inc. An outside spokesperson for Oppenheimer, Stefan Prelog, declined to comment on behalf of Oppenheimer. Ms. Lambui's complaint with the New York State Division of Human Rights was filed in October 2013. (More: 8 big-money Finra fines)

Latest News

DOJ's fraud sweep bags over $1B in convictions, guilty pleas and indictments in a single week
DOJ's fraud sweep bags over $1B in convictions, guilty pleas and indictments in a single week

Medicare scam, pandemic benefit theft, offshore tax evasion — federal prosecutors are casting a wide net.

Retirement without guaranteed income streams may mean near-total asset wipeout
Retirement without guaranteed income streams may mean near-total asset wipeout

Report finds that pension income acts as a financial lifeline for retirees facing late-life shocks and raises urgent questions about the DC-only future.

Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney
Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney

Nine-month electronic trading freeze and share lending program at the center of dismissed claim.

RIA wrap: Dynamic strikes South Carolina deal to reach $7B AUM milestone
RIA wrap: Dynamic strikes South Carolina deal to reach $7B AUM milestone

Meanwhile, Rossby Financial's leadership buildout rolls on with a new COO appointment as Balefire Wealth welcomes a distinguished retirement specialist to its national network.

Rethinking diversification amid a concentrated S&P 500
Rethinking diversification amid a concentrated S&P 500

With a smaller group of companies driving stock market performance, advisors must work more intentionally to manage concentration risks within client portfolios.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline