Securities Arbitration Lawyers BlogStifel, Nicolaus & Company Broker Chuck Roberts Subject Of FINRA Arbitration Claims
Silver Law Group is investigating investor claims involving Stifel, Nicolaus & Company broker Chuck Roberts, who is currently the subject of sixteen investor complaints relating to mishandling of investors’ portfolios. Roberts, a Stifel, Nicolaus & Company broker since 2016, catered primarily to clients in Miami, Florida and New York, New York.
Most Investor Complaints Concern “Structured Notes”
Structured notes are hybrid-style investments that are tied to the performance of several types of other outside investments. Investors’ returns are “derivative,” meaning that the notes’ performance fluctuates with the performance of these outside investments.
Structured notes come with a unique set of risks that investors should be weary of, including:
- Lack of liquidity, as there may not be a market for selling the products
- “Call” provisions, similar to a margin call
- Tax considerations
- Issuance price versus the value of the product
- Creditworthiness of the issuers of the product
Moreover, structured notes often have complex payoff structures that make it difficult to assess their true value. For example, structured note returns may be capped above a certain percentage, limiting these notes’ upside. Certain features of these products may also be triggered only if the note achieves a certain increase or decrease in value, which could result in loss of principal or interest payments.
Regardless, it is important for investors to understand these components before investing in structured notes.
Structured Notes Sold By Chuck Roberts
Amongst others, structured notes that may be causing issues in Stifel, Nicolas & Company investors’ portfolios include:
- Bank of Montreal Contingent Barrier Notes
- Barclays Bank Phoenix Contingent Interest Notes
- BMO Autocallable Barrier Notes
- BofA Contingent Income Auto-Callable Yield Notes
- Citigroup Autocallable Contingent Interest notes
- Credit Suisse Contingent Coupon Autocallable Yield Notes
- GS Autocallable Contingent Coupon Equity-Linked Notes
- HSBC Contingent Income Barrier Note
- JPMorgan Auto Callable Contingent Interest Note
- Morgan Stanley Contingent Income Auto-Callable Notes
Many of these structured notes were tied to the performance of extremely risky or volatile investments. When these investments performed poorly, investors who were sold these notes also suffered or paid substantial commissions.
Did You Lose Money In Structured Notes Sold By Chuck Roberts And/Or Stifel, Nicolas And Company?
Brokerage firms and financial advisors are obligated to explain the features and risks of structured notes before selling them. Unfortunately, investors continue to incur losses in these complex and risky investments.
Silver Law Group is experienced in representing investors in securities and investment fraud cases nationwide. Our lawyers can help you recover investment losses due to stockbroker misconduct and most cases are handled on a contingency fee basis, meaning you won’t owe us any money until we recover your money for you.
Scott Silver, managing partner of Silver Law Group, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and has extensive experience representing investors in securities and investment fraud cases. Our attorneys can meet with you in person or via teleconference. Please contact us for a confidential consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.