The Securities Arbitration Law Firm of KlaymanToskes, www.klaymantoskes.com, announces that it has commenced an investigation into the Put Option strategy implemented by Sheaff Brock Investment Advisors, LLC (“Sheaff Brock”) in TD Ameritrade customer accounts. The investigation comes on the heels of a Federal Class Action Claim (1:18-cv-419) filed in the United States District Court for the Northern District of Illinois on January 19, 2018.
The Federal Class Action Claim Against TD Ameritrade and Sheaff Brock
The federal claim alleges that Sheaff Brock implemented the put option strategy in an aggressive, high-risk manner, after assuring its clients that the investments were conservative and safe. Furthermore, it is alleged that the marketing materials contained information which did not comply with FINRA regulations. Both Sheaff Brock and TD Ameritrade played a roll in the marketing of the strategy and in obtaining the clients for the program.
The Relationship Between TD Ameritrade and Sheaff Brock – AdvisorDirect
TD Ameritrade offers a program to customers who have more than $500,000 in investable capital. The program is called AdvisorDirect. AdvisorDirect gives investors the option of having their portfolio managed by registered investment advisors. TD Ameritrade used this program to refer clients to Sheaff Brock. TD Ameritrade provided marketing materials about Sheaff Brock to their customers, which included information about trading strategies. TD Ameritrade and Sheaff Brock both benefited from this relationship.
Investors Rights for Losses Suffered
TD Ameritrade customers who, through AdvisorDirect, were referred to Sheaff Brock, took part in the put option strategy, and have lost more than $100,000 should consider whether they should file individual securities arbitration claims instead of participating in the class action suit. KlaymanToskes reminds investors of the benefits of filing an individual securities arbitration claims, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor may only recover a nominal amount. However, if one has experienced significant losses, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, KlaymanToskes conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file securities arbitration claims traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, Click Here.
The sole purpose of this release is to investigate the sales practices and alleged financial misconduct of Sheaff Brock and TD Ameritrade in the marketing and sales of put options. Investors who purchased these investments are encouraged to contact Lawrence L. Klayman, Esq. of KlaymanToskes at (888) 997-9956, or visit our website at www.klaymantoskes.com.