At Sonn Law Group, our securities fraud lawyers are currently investigating claims that Sheaff Brock Investment Advisors, LLC (CRD# 118739 / SEC# 801-60978) implemented unsuitable investment strategies in brokerage accounts of TD Ameritrade customers.
In January of 2018, a class action lawsuit was filed by a group of investors against Sheaff Brock Investment Advisors in a federal court in Illinois. According to the lawsuit, the firm used an aggressive, unsuitable put option strategy on behalf of these conservative investors.
Allegations of Broker Misconduct: Unsuitable Put Option Investment Strategy
In investing, a ‘put option’ or ‘put’ is a stock market instrument that gives the owner the right — not the obligation — to sell the asset at a predetermined price on a predetermined date. To make money investing in put options, the put buyer needs the price of the underlying stock to go down. If the investor is on the wrong side of this investment, there is a possibility that they will sustain significant losses.
Put options are considered to be a risky investment strategy. They are not considered to be appropriate or suitable financial products for conservative investors.
The federal lawsuit alleges that Sheaff Brock Investment Advisors misrepresented the put option strategy to TD Ameritrade customers. The investment advisory firm is alleged to have pushed this relatively risky strategy on customers who were seeking conservative and safe investments. Notably, TD Ameritrade obtained financial benefits from referring its customers to Sheaff Brock.
Speak to a Securities Fraud Attorney
At Sonn Law Group, we represent investors in disputes against broker-dealers and financial advisors. If you lost money because your brokerage firm implemented an unsuitable investment strategy, our law firm can help. For a free, no obligation consultation, please call us today.
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