Articles Tagged with structured products

Stoltmann Law Offices represents investors that were sold high-risk structured products. FINRA, the federal securities industry regulator, fined J.P. Morgan $200,000 for “failing to reasonably supervise a broker who made unsuitable, unauthorized trades in his grandmother’s account with the firm,” according to thinkadvisor.com.

From March 2014 through March 2019, Evan Schottenstein, along with his brother, Avi Schottenstein, another broker at Morgan, “allegedly made the trades in question, which were largely in structured products, according to FINRA. During that period, Evan Schottenstein was responsible for his grandmother’s investment strategy and made all trade recommendations for her account, FINRA said. At the time, the grandmother was 88 years old, retired and widowed.

“Evan Schottenstein filled his grandmother’s account with structured products, exceeding his firm’s limits for such investments,” FINRA stated. “The firm used an ‘exception report’ that generated monthly alerts when structured products exceeded a 50% threshold for a client’s net account equity and a 15% threshold for a client’s liquid net worth,” FINRA noted.

Did you buy structured products from a Barclays registered broker? If so, those losses may be recoverable through the Financial Industry Regulatory Authority (FINRA) arbitration process on a contingency fee basis. Recently, Barclays stopped selling highly engineered certificates of deposit (CDs) that resulted in customers earning zero interest. In 2012, FINRA investigated whether buyers of these types of products had a clear understanding of the risks associated with them. Structured products offer retail investors easy access to derivatives and tend to be risky, with their returns tied to a group of stocks or other assets, that could yield as much as 5 percent annually, much higher than the average 1.19 percent average for a five-year conventional CD. In June 2011, Barclays sold a CD based on stocks including AT&T Inc., Phizer Inc. and Alphabet Inc., Google’s parent company. Barclays gave more credit for the stock’s decline than for its gains. Two of the stocks in the basket, Apollo Education Group and Weight Watcher International, tanked, pushing the coupon to zero. If you suffered losses because of a recommendation or sale of these structured products through a Barclays broker, you may be able to recover your losses by calling us today. The call is free with no obligation. We will discuss your options of bringing legl recourse against Barclays.

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