UBS manager who supervised whistle-blowing Enron adviser retires
A branch manager for UBS Wealth Management — in the Houston complex where an adviser famously blew the whistle on Enron Corp.'s stock to clients in 2001 — has elected to retire.
A branch manager for UBS Wealth Management Americas — in the Houston complex where an adviser who famously warned clients to sell Enron Corp.’s stock in 2001 — has elected to retire.
Pat Mendenhall, 50, who served the firm for 19 years, made the decision in April, but the news was revealed yesterday in a memo sent to the 115 advisers at UBS Wealth’s three Texas offices, spokesman Kris Kagel confirmed.
Mr. Mendenhall’s last day at the firm is today. A replacement has not yet been determined, Mr. Kagel noted.
“Pat’s contributions to the firm throughout his career have had a lasting impact on our clients and our organization,” Ben Tarantino, Texas market manager for UBS Wealth Management Americas, wrote in a memo that was obtained by InvestmentNews.
Mr. Mendenhall was the manager of the complex in 2001 when adviser Chung Wu was fired for sending an e-mail to clients recommending that they sell their shares of stock in the now-defunct Enron, contradicting the advice of the analyst from UBS PaineWebber, as it was named at the time.
Subsequent to the firing, Mr. Mendenhall sent an e-mail to clients retracting Mr. Wu’s advice.
In 2002, the firm said Mr. Wu violated National Association of Securities Dealers Conduct Rule 2210, which requires “sales literature” to be reviewed by a supervisor before being sent out, InvestmentNews,May 6, 2002.
Mr. Wu was also fired for sending out unsuitable recommendations, said a source close to the matter.
He also sent the e-mail out without disclosing that his recommendations were in conflict with the firm’s research department.
Regarding the firing of Mr. Wu, Mr. Mendenhall had no comment.
“I am retiring from 19 years at UBS to pursue other opportunities within the wealth management industry,” Mr. Mendenhall said.
He started his career at UBS in 1990 as a producing sales manager, was named a branch manager 15 years ago and became managing director of UBS Wealth Management in 2007.
The Houston complex has $67 million in revenue. Of that amount, Mr. Mendenhall was in charge of $42 million.
UBS Wealth Management’s U.S.-based business is headquartered in New York.
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