National investment loss lawyers KlaymanToskes is investigating Cornerstone Wealth Management (Las Vegas) and financial advisors who unsuitably recommended investments in structured notes to their customers. Our law firm believes many investors may have been misled regarding the risks and liquidity issues associated with Cornerstone Wealth Management’s Structured Note investment offerings.
Cornerstone Wealth Management in Las Vegas, NV has allegedly been promoting structured notes sold during “free seminars.” These seminars were held in Las Vegas restaurants and targeted seniors seeking principal safety and retirement income. At these events, Cornerstone Wealth Management and their sales team, many of whom are financial advisors licensed through Independent Financial Group, reportedly presented structured notes as being similar to bonds and certificates of deposit. Cornerstone and its representatives allegedly also claimed that these investments were ideal for seniors wanting to avoid stock market risk.
If your financial advisor at Cornerstone Wealth and/or any other brokerage firm recommended an unsuitable structured note investment based on your investment profile, or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
If you suffered losses in Structured Note investments due to undisclosed risks, unreported sudden declines in market value, and/or securities violations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Structured notes are “hybrid” investments, combining a debt instrument (bond) and a reference security that together purport to offer principal protection and potential upside linked to a specific asset’s performance. Despite their potential for above-market gains, structured notes involve significant risks, including illiquidity, principal risk, credit risk, and default risk, which may lead to the loss of an investor’s entire original investment. Cornerstone Wealth Management and its advisors reportedly sold structured notes to investors, including a structured note with returns tied to the share price performance of Disney and PayPal.
Investors are often drawn to structured notes for their high return potential, but these investments come with an elevated degree of risk, potentially leading to the total loss of principal. The illiquidity, credit risk, and default risk associated with structured notes, amplified by their complexity, make them volatile and high-risk, particularly when the underlying reference security or index experiences market volatility. If the issuer of a structured note defaults, investors could lose their entire investment.
Investors should be vigilant for signs indicating unsuitable investment recommendations in structured notes, which could suggest misconduct, negligence, or investment fraud:
Structured notes, with their inherent complexity, may not be suitable for every investor, particularly those seeking consistent income or principal protection. If you’ve experienced losses due to mismanagement or unsuitable recommendations regarding structured note investments, there are avenues for recovery
If you purchased structured notes through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.