UBS Overvalued Property by $100 Million, Fired Executive Says

[PL1957]

http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=aE3unrW9nV4E

Nov. 24 (Bloomberg) -- UBS AG, Switzerland's biggest bank, charged inflated fees at an $11.7 billion U.S. real-estate fund by overvaluing some commercial properties, a former official alleges in his wrongful-termination lawsuit.

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One disputed valuation in the lawsuit involves a Texas shopping mall, the Galleria Dallas.

UBS Realty told investors the mall was worth $517.5 million in the second quarter, according to court papers, overriding an independent appraisal that would have reduced it by $33.1 million. At the same time, UBS was challenging a local tax appraisal of $348.6 million as ``substantially excessive,'' according to a separate lawsuit filed by the bank's representatives in Dallas County District Court.

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Pressure in commercial appraisal? Naah, it doesn't happen ...

 

[PropertyEconomics]

http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=aE3unrW9nV4E

Nov. 24 (Bloomberg) -- UBS AG, Switzerland's biggest bank, charged inflated fees at an $11.7 billion U.S. real-estate fund by overvaluing some commercial properties, a former official alleges in his wrongful-termination lawsuit.

---

One disputed valuation in the lawsuit involves a Texas shopping mall, the Galleria Dallas.

UBS Realty told investors the mall was worth $517.5 million in the second quarter, according to court papers, overriding an independent appraisal that would have reduced it by $33.1 million. At the same time, UBS was challenging a local tax appraisal of $348.6 million as ``substantially excessive,'' according to a separate lawsuit filed by the bank's representatives in Dallas County District Court.

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Pressure in commercial appraisal? Naah, it doesn't happen ...

Apparently the pressure didnt work. Looks to me more like UBS simply ignored the appraisal so they could charge higher fees and yet out of the other side of their mouth fought a tax appeal.
This is not relly an example of pressure in commercial appraisals ... its yet another example of IDIOCY in the corporate world.
Then again, from my experience with this "group" its often hard to make good decisions when one is "sloshed"!!

 

[PL1957]

This is not relly an example of pressure in commercial appraisals ... its yet another example of IDIOCY in the corporate world.

The pressure was "get us higher values or you'll get fired". The higher values didn't come, and he got fired.

 

[PropertyEconomics]

The pressure was "get us higher values or you'll get fired". The higher values didn't come, and he got fired.

Most of us get fired at one point or another. Best to be fired with your principals in tact than to be let go when the company falls as a result of your actions.

 

[PL1957]

Most of us get fired at one point or another. Best to be fired with your principals in tact than to be let go when the company falls as a result of your actions.

Especially when you can find an attorney to file a wrongful termination action ...

 

[Ryan Bailey]

Texas is a "Right to work state", isn't it? Therefore no wrongful termination action right???

 

[Caligirl]

Thank you for the link to the article, PL.

 

[PL1957]

Texas is a "Right to work state", isn't it? Therefore no wrongful termination action right???

The employee is in CT

 

[Vegan702]

So what kind of fee would be in line with appraising a large shopping mall?

 

[PL1957]

So what kind of fee would be in line with appraising a large shopping mall?

It's kind of like asking about gas milage on a Rolls Royce - if you're concerned about it, you can't afford it ...