Chuck Roberts (CRD# 2064602) is a registered broker and investment advisor currently employed with Stifel, Nicolaus & Company, Incorporated (CRD# 793) of New York, NY. He was previously employed by Morgan Stanley (CRD# 149777), Citigroup Global Markets Inc. (CRD# 7059) and Oppenheimer & Co. Inc. (CRD# 249), all of New York, NY. He has been in the industry since 1990.
Roberts is currently the subject of nine pending customer disputes. Eight of those disputes were filed between 5/3/2023 and 7/21/2023. Collectively, these damages total $23.5 million. They have similar allegations of “breach of fiduciary duty, negligence, fraud, breach of contract, and violation of the Florida Securities And Investor Protection Act.” One dispute includes “violation of the California Corporations Code.”
The subject of these investments is called “structured notes.”
How Structured Notes Work
Structured notes are a two-part investment. The note is a debt obligation which includes an embedded derivative component that adjusts its risk return profile. Returns are linked to the performance of an index, such as the S&P 500, an underlying asset, or a group of assets.
The notes also come with low liquidity along with risks from both the market and from default. Because of their flexibility, structured notes can offer a variety of payoffs not available in other investments. But they also come with low liquidity, as well as default and market risks.
Structured notes are generally considered to be both too complex and too risky for individual investors. For instance, some include principal protection, while others do not, which can lead to the loss of the entire principal amount. Investors are expected to hold these notes to maturity, meaning it’s difficult to sell on a secondary market. These notes also have a high default risk, again, leading to a complete loss of principal.
Other Chuck Roberts FINRA arbitration CLaims
One dispute, filed on 4/11/2023, alleged that Roberts misled the customer about the “risks and characteristics” of specific investments. The claim had no indication of requested damages and was denied.
Another dispute, filed on 10/24/2022, also listed as pending, requests $1,000,000 in damages for “negligence (breach of FINRA Rules), negligent misrepresentation, and breach of fiduciary duty in connection with an outside investment in a hedge fund and with investments purchased at Stifel.”
There are three other disclosures from 2010 while Roberts was registered with Morgan Stanley. In a customer dispute filed on 9/20/2010, a customer alleged, “inter alia, that beginning in 2008 the financial advisor made unsuitable and unauthorized trades. Claimants also allege that FA made misrepresentations regarding investments in the claimants’ accounts.” The dispute involved a family trust investment into two companies and the use of margin credit and went to FINRA arbitration for resolution. The clients requested damages of $313,249.78, and the claim was settled for $202,228.00.
In a disclosure action filed by the State of Illinois on 4/28/2010, Roberts’ license in Illinois was suspended and he was fined $1,000 following a FINRA suspension involving activity with Initial Public Offerings (IPO.) No other action was taken.
Prior to the Illinois action, FINRA suspended Roberts from 3/15/2010 through 4/11/2010 and fined him $40,000. Roberts signed an Acceptance, Waiver & Consent (AWC) Letter on 1/8/2010. Along with a colleague, Roberts and his sales team participated in changing the email addresses for certain customers’ accounts to firm emails so that they did not receive “excessive” emails.
Did You Invest With Chuck Roberts?
Scott Silver is a leading investor advocate representing investors in securities and investment fraud disputes. Over the course of his career, Scott has recovered millions of dollars for investors through FINRA arbitration and class action litigation. Scott has served as the chairman of the American Trial Lawyer’s Securities Fraud group for the past decade. A frequent speaker at industry conferences and education events, Scott particularly enjoys speaking at law schools and has guest lectured at the University of Miami School of law on multiple occasions.
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.