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In October 2024, Stifel, Nicolaus & Company was ordered to pay almost $15 million in damages to two clients of its Managing Director of Investments, Chuck A. Roberts, for his recommendation of structured notes. According to Advisor Hub, the three public arbitrators panel ” also denied Stifel’s request to expunge the matter from Roberts’ public record.”
Peiffer Wolf is investigating Chuck A. Roberts for his recommendation of structured notes and potentially other alternative investments. If you invested with Chuck A. Roberts, Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation.
Chuck A. Roberts Investigation | What happened?
According to FINRA’s BrokerCheck, Chuck A. Roberts has been registered with Stifel, Nicolaus & Co. Inc. since 2016 as a broker and since 2019 as an Investment Advisor. Since being registered with Stifel, he has been the subject of 19 disclosures, 16 of which are still pending and “seek $41.2 million in damages combined”, the AdvisorHub notes. Some of the more notable disclosures include:
- 12/14/23 – Customer Dispute. Amount Requested: $5,000,000. Allegations: “Claimants allege breach of fiduciary duty, negligence, fraud, breach of contract, and violation of the Florida Securities and Investor Protection Act.”
- 10/19/23 – Customer Dispute. Amount Requested: $5,000,000. Allegations: “Claimants allege breach of fiduciary duty, negligence, fraud, breach of contract, violation of the New Jersey uniform securities law, and violation of the Florida securities and investor protection act.”
- 6/9/23 – Customer Dispute. Amount Requested: $5,000,000. “Claimants allege breach of fiduciary duty, negligence, fraud, breach of contract, and violation of the Florida securities and investor protection act.”
- 5/9/23 – Customer Dispute. Amount Requested: $5,000,000. “Chuck Roberts was a subject of the customer’s complaint against his member firm that asserted the following causes of action: breach of fiduciary duty; negligence; negligent supervision; fraud; breach of contract; and violation of the Florida Securities and Investor Protection Act.”
- 10/24/22 – Customer Dispute. Amount Requested: $5,000,000. “Claimant alleges breach of fiduciary duty, negligence, fraud, breach of contract, and violation of the Florida securities and investor protection act in connection with an outside investment in a hedge fund and with investments purchased at Stifel.”
As reported by InvestmentNews, the $14.2 million award to the investors is a result of Stifel’s alleged “fraud, negligence, negligent supervision and other claims in their complaint relating to [the plaintiff’s] investment in structured notes, a complex and potentially volatile product.” The $14.2 million award included “$4 million in compensatory damages, plus interest; $9 million in punitive damages; and $1.1 million in legal fees, plus another $100,000 in costs.”
Investment News also reported that “Roberts has also been in the headlines locally in south Florida as a prominent buyer of real estate. In 2019, he reportedly paid $10.9 million for a brand-new condominium on the Atlantic Ocean.” More recently, in July 2024, according to The Real Deal, Roberts bought a “$16M waterfront Bay Point house. […] The Roberts financed the purchase with an $11.2 million mortgage from Stifel Bank & Trust.”
For Stifel, Nicolaus & Co. Inc., this comes right after the firm agreed to pay “a penalty of $35 million” according to an announcement by the Securities and Exchange Commission “for recordkeeping failures as the regulator [SEC] continues its investigation into firms’ electronic communications practices.” (Source: Financial Advisor IQ)
To review Chuck A. Roberts’ Brokercheck report, click here: https://brokercheck.finra.org/individual/summary/2064602
*BrokerCheck is run by the Financial Industry Regulatory Authority, Inc. (FINRA)
Chuck A. Roberts Investigation | Autocallable notes in your portfolio?
Among the structure notes and other alternative investments allegedly recommended by Chuck A. Roberts are:
Autocallable 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
JPMorgan Auto Callable Contingent Interest Note
Morgan Stanley Contingent Income Auto-Callable Notes
Other products
Bank of Montreal Contingent Barrier Notes
Barclays Bank Phoenix Contingent Interest Notes
HSBC Contingent Income Barrier Note
If Chuck A. Roberts recommended any of the products listed above to you, Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation.
Chuck A. Roberts Investigation | Do you have Autocallable Notes in your portfolio?
Autocallable notes are structured products that are automatically called by the issuer prior to maturity if the performance of one or more reference assets meets prespecified conditions at a certain time during the term of the product. For example, if the reference asset is at or above its initial level on a specified observation date, the product is automatically called. Payment upon autocall varies, with some products offering full return of principal and others exposing investors to loss of principal. The autocall feature can be found in a variety of different structured product types, such as reverse convertibles.
Autocallable notes contain several risks to investors, including:
- Illiquid: Structured notes are primarily designed to be buy-and-hold investments. While some notes have relatively short maturities, measured in months, others might extend out for 10 years or more. Autocallable notes are not listed on an exchange, and there’s no guarantee of a secondary market for trading them.
- Market Risk: While some structured notes provide for the repayment of principal at maturity, many autocallable notes do not offer this feature. In those cases, the performance of the linked asset or index may cause you to lose some, or all, of your principal. Depending on the nature of the linked asset or index, the market risk of the structured note may include changes in equity or commodity prices, changes in interest rates or foreign exchange rates, or market volatility.
- Pricing: Prior to the issuance of a structured note, the issuer provides an initial estimated value of the note. This value is based on an internal valuation model that prices the embedded components used to structure the note’s payoff. The initial estimated value is generally less than the price of the note, meaning that you’re investing an amount per note that exceeds its estimated value.
- Credit Risk: Structured notes are unsecured debt obligations of the issuer, meaning that the issuer is obligated to make payments on the notes as promised. These promises, including any principal protection, are only as good as the financial health of the structured note issuer. If the structured note issuer defaults on these obligations, investors may lose some, or all, of the principal amount they invested in the structured notes as well as any other payments that may be due on the structured notes.
Chuck A. Roberts Client?
Brokers have a legal obligation and regulatory obligation to supervise their registered representatives. This duty includes supervising a broker’s outside business activities. To the extent that any of these duties are breached, the customer may be entitled to a recovery of their investment losses.
If you believe you may be a victim of Chuck A. Roberts alleged unsuitable recommendations, contact Peiffer Wolf immediately for a FREE Consultation 585-310-5140.
FREE Consultation | 585-310-5140
If you believe you may be a victim of investment fraud or broker misconduct, it is imperative to take action. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors.
Peiffer Wolf is investigating Chuck A. Roberts for his recommendation of structured notes and potentially other alternative investments. If you invested with Chuck A. Roberts, Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation.
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