National investment loss lawyers KlaymanToskes is investigating Chuck Roberts (CRD# 2064602) of Stifel, Nicolaus, & Co., following the filing of eight customer complaints alleging more than $23 million in damages due to unsuitable investment recommendations in structured products, commonly referred to as structured notes.
According to public record, Roberts associated with Stifel, Nicolaus & Co.’s CR Wealth Management Group, based out of the firm’s Bryant Park office in New York.
Investors that suffered losses with Chuck Roberts at Stifel Nicolaus & Co. in New York, NY or Miami Beach, FL are encouraged to contact attorney Lawrence L. Klayman, Esq., for a free consultation to discuss recovery options at 888-997-9956 or lawrence@klaymantoskes.com. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
According to FINRA BrokerCheck, Chuck A. Roberts has twelve public disclosures including eight pending investor complaints. The most recent pending complaint against the Stifel Nicolaus & Co. broker/advisor alleges $5,000,000 in damages and that Roberts engaged in a breach of fiduciary duty, negligence, fraud, breach of contract, and violation of the Florida Securities and Investor Protection Act.
The additional pending complaints against Roberts allege similar allegations of unsuitable investment recommendations in structured notes at Stifel, Nicolaus & Co. According to public record, some investors allege Roberts sold millions of dollars in structured notes by engaging in unauthorized trading to generate large commissions.
Roberts allegedly did not properly disclose the considerable risks of the structured products he purchased for his customers, and failed to adequately explain the intricate terms involved. Additionally, his unsuitable strategy reportedly included recommending structured notes with the same high-risk linked securities, causing his customer’s portfolios to be concentrated in certain securities.
Structured financial products, commonly referred to as structured notes, are financial instruments that contain an embedded derivative component which adjusts the security’s risk/return profile. These investments may be considered “hybrid” securities, as they have two underlying components, a bond and a derivative.
The bond component of a structured note provides the investor with principal protection and takes up most of the note, while the rest of the investment makes up a derivative product which may provide investors with upside potential. The return performance of a structured investment product tracks both the underlying debt obligation and the derivative embedded within it.
Structured product returns are linked to the performance of an underlying asset, group of assets, or an index. This is generally based on equity indexes, a basket of equities, interest rates, commodities, or foreign currencies. Common types of structured notes include principal-protected notes, reverse convertible notes, and leveraged notes.
Financial professionals and their firms have a fiduciary duty to recommend suitable investments that are in their customer’s best interest. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than properly benefiting the client, is violating securities laws.
Additionally, holding large concentrated stock or investment positions may pose significant downside risks for investors. Brokerage firms and their registered financial professionals have a responsibility to ensure that their customers understand the risks associated with concentration, and to disclose and recommend the risk management strategies which can be used to protect the value of the concentrated portfolio.
Some brokerage and investment advisory firms may compensate their representatives on sales credit embedded in the price of structured investment notes. Brokers and financial advisors may also be further compensated by a markdown if sold in a secondary market transaction. This compensation structure creates a conflict of interest that may incentivize a broker/financial advisor to recommend frequent structured product transactions.
Former and current customers of Chuck Roberts who sustained losses in structured investment products are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Financial professionals and their firms have a fiduciary duty to recommend suitable investments that are in their customer’s best interest. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than properly benefiting the client, is violating securities laws.
Some brokerage and investment advisory firms may compensate their representatives on sales credit embedded in the price of structured investment notes. Brokers and financial advisors may also be compensated by a markdown sold in a secondary market transaction. This compensation structure creates a conflict of interest that may incentivize a broker/financial advisor to recommend frequent structured product transactions.
Former and current customers of Chuck Roberts who sustained losses in structured investment products are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com