DID STOCKBROKER CHUCK ROBERTS CAUSE YOU INVESTMENT LOSSES?
Chuck A. Roberts, a financial advisor with Stifel, Nicolaus & Company, Incorporated, has a controversial track record marred by significant client losses due to risky structured product investments.
Despite his assurances of low-risk, high-return opportunities, his strategies as a stockbroker have led to numerous customer complaints and regulatory actions, raising serious concerns about his investment practices. Let’s explore these issues below together.
Structured Product Recommendations and Losses
Chuck A. Roberts is notably associated with significant client losses related to structured product recommendations. Structured products are highly complex debt securities with an embedded derivative component linked to the performance of an underlying reference asset, such as stocks or indices.
These investments typically limit the investor’s upside while offering some form of downside protection against losses. Despite their complexity, Roberts allegedly assured clients that structured products would preserve capital and generate returns with a “long-term average of around 12.25%,” presenting them as less risky than stocks and almost as substitutes for bonds.
However, many of the structured products he recommended were autocallable notes, which provided little to no meaningful downside protection against significant declines in the price of the underlying reference assets.
These underlying assets were often highly speculative and extremely volatile securities, such as technology stocks and sector-specific indices. For instance, when the S&P Biotech ETF (XBI), a volatile biotech index, rapidly declined in 2022, clients holding structured notes linked to XBI suffered substantial losses.
Roberts allegedly failed to adequately disclose the significant risks and complex terms associated with these structured products. Clients were often unaware of the true nature of the investment’s risk profile and the potential for substantial losses. Specific structured notes that resulted in losses included:
- Bank of Montreal Contingent Barrier Note linked to Pinterest due 8/31/23: Investors faced losses due to the underperformance of Pinterest stock.
- Barclays Bank Phoenix Contingent Interest Note linked to the Least Performing of RTY, KRE, and NDX due 6/2/23: Clients suffered when these indices performed poorly.
- BMO Autocallable Barrier Notes with Contingent Coupons Linked to Square due 12/7/23: The decline in Square’s stock price led to significant investor losses.
- BofA Contingent Income Auto-Callable Yield Notes Linked to Dynatrace due 10/31/23: Dynatrace’s stock volatility contributed to investor losses.
- Citigroup Autocallable Contingent Interest Note linked to Okta due 10/31/23: The underperformance of Okta’s stock resulted in notable losses for clients.
In addition to the complex nature of these products, Roberts is alleged to have employed a strategy that concentrated clients’ accounts in a limited number of high-risk structured notes. This over-concentration increased the level of risk to which clients were unknowingly exposed. For example, Roberts recommended investments in autocallable structured notes linked to single high-risk stocks, such as Square (now Block), which resulted in substantial losses when these stocks’ prices dropped precipitously.
Moreover, Roberts allegedly misrepresented the safety and potential returns of these structured notes, failing to explain the trigger thresholds and the conditions under which the notes could be called or fail to provide the anticipated returns. His unsuitable strategy also involved recommending structured notes linked to the same high-risk securities repeatedly, exacerbating clients’ exposure to market volatility.
The underlying reference assets of the structured notes were often highly speculative and volatile, such as:
- S&P Biotech ETF (XBI): Tracks the Biotechnology Select Industry Index, known for its high volatility.
- Individual technology stocks: Including highly speculative and often unprofitable companies like Square, Okta, and Dynatrace.
Roberts’ recommendations and failure to adequately disclose risks led to numerous customer complaints and significant financial losses. His approach not only misaligned with clients’ investment goals but also contravened the suitability requirements set by securities regulators, who mandate that brokers must have a reasonable basis to believe their recommendations are suitable for their clients based on the clients’ investment profiles and risk tolerances.
These allegations have led to multiple ongoing FINRA arbitration cases against Roberts and his employer, Stifel, Nicolaus & Company, Incorporated, as clients seek to recover the substantial losses incurred due to his investment strategies and recommendations.
Did You Lose Money Because of Broker Misconduct?
If you have lost money due to negligence or fraud by a stockbroker or advisor, the easiest way to know if you have a case is to call our office at 800-732-2889. Our investment fraud attorneys will evaluate your claim for free and let you know if we can help you recover your losses.
Need Legal Help? Let’s talk.or, give us a ring at 561-338-0037.
Chuck Roberts Broker Bio
Here’s what you need to know about New York, NY stockbroker Chuck A. Roberts:
- Name: Mr. Chuck A. Roberts
- Current Employer: Stifel, Nicolaus & Company, Incorporated
- Function: Stockbroker / Financial Advisor
- Primary Location: New York, NY
- CRD Number: 2064602
- Can Chuck A. Roberts be sued in FINRA arbitration? Yes
- Sanctioned by FINRA: Yes
- Highest Settlement or Award: $14 Million
- Pending Customer Disputes Seek Damages of: Up to $5,000,000
If you’ve sustained damages from Mr. Roberts, discuss your case with experienced investment fraud lawyer Robert Pearce at 1-800-732-2889 for a free consultation.
Allegations of Broker Misconduct Against Chuck A. Roberts
Customers of broker Chuck A. Roberts have alleged the following wrongdoing in connection with the handling of customer accounts:
- Unsuitable and Unauthorized Trades: Customers allege Mr. Roberts made unauthorized trades and misrepresented investments in their accounts.
- High Commissions: Multiple complaints about high commission rates charged without proper disclosure.
- Disclosure Events: Mr. Roberts has multiple regulatory events and customer disputes filed against him.
Regulatory Events
- Illinois Regulatory Action (Final)
- Date Initiated: 04/28/2010
- Allegations: Registration as a salesperson subject to revocation due to a prior FINRA proceeding.
- Resolution: Final order on 08/04/2010 with a $1,000 fine and restrictions on trading in IPOs.
- Relevant FINRA Rule: FINRA Rule 3110 (Supervision)
- FINRA Regulatory Action (Final)
- Date Initiated: 02/05/2010
- Allegations: Knowledge of replaced customer email addresses to facilitate unauthorized trades, causing a firm violation of SEC Rule 17A-3 and NASD Rule 3110.
- Resolution: Censured, fined $40,000, and suspended for four weeks starting 03/15/2010.
- Relevant FINRA Rule: NASD Rule 2110 (Standards of Commercial Honor and Principles of Trade), NASD Rule 2790 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings)
Customer Disputes
- Award to Customer 1
- Filing Date: 05/09/2023
- Disposition Date: 11/07/2024
- Allegations: Structured Notes Violation 517, Fla. Stats., Breach of Fiduciary Duty, etc.
- Award Amount: Over $3.2 Million
- Award to Customer 2
- Filing Date: 05/09/2023
- Disposition Date: 10/03/2024
- Allegations: Structured Notes Violation 517, Fla. Stats., Breach of Fiduciary Duty, etc.
- Award Amount: Over $14 Million
- Award to Customer 3
- Filing Date: 09/20/2010
- Disposition Date: 06/18/2013
- Allegations: Unsuitable and unauthorized trades, misrepresentation of investments.
- Award Amount: $202,228
- Pending Disputes
- Multiple disputes with alleged damages ranging from $100,000 to $5,000,000 for breaches of fiduciary duty, negligence, fraud, and violations of state securities laws.
Chuck Roberts Red Flags & Your Rights As An Investor
Of course, Chuck Roberts did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Chuck Roberts at Stifel, Nicolaus & Company, Incorporated on alert to review carefully the activity and performance of their accounts and question whether Chuck Roberts has engaged in any stockbroker misconduct that may have caused them investment losses.
The large number of customer complaints at Stifel, Nicolaus & Company, Incorporated, also raises questions about the brokerage firm’s supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor.
File A Claim To Recover Your Investment Losses At Stifel, Nicolaus & Company, Incorporated Due To Broker Chuck Roberts
If you have questions about Chuck Roberts and/or Stifel, Nicolaus & Company, Incorporated and/or and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.
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