The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Broker Britta Ferguson (Ferguson), currently employed by Wealth Enhancement Brokerage Services, LLC has been subject to at least one disclosable event. These events include one customer complaint. According to records kept by The Financial Industry Regulatory Authority (FINRA), Ferguson’s most recent customer complaint alleges that Ferguson recommended unsuitable investments in structured products and makes allegations concerning misconduct relating to the handling of the customer’s accounts.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $10,800.00 on July 15, 2025.
Firm was notified on 07/15/2025 of the customer complaint. A structured note was purchased on 03/25/2025 without proper explanation to the client. The risk level of the investment was not something the customer was comfortable with and would not have moved forward with the purchase had she known upfront. The structured note had already been purchased and was in the process of being journaled. Once the journal settled, the position was closed/sold on 04/04/2025 resulting in the alleged compensatory damage amount.
Structured products belong to a category of derivative products, which obtain their performance from data linked to the market. The market risk of a structured product is typically linked to an underlying reference. A single security, a set of securities like a market index, commodities, interest rates, or a portfolio of real estate loans each can serve as the source. The variety of products that can be structured demonstrates the difficulty in formulating a single unified definition of a structured product.
Compared to traditional debt or equity instruments, structured products generally yield inferior risk/return profiles, as the issuing brokerage firms—primarily large banks—profit from the spread between investor payouts and the earnings from issuing structured notes, after accounting for broker commissions and fees. Because these products are complex, the majority of investors will find it challenging to evaluate their value or determine the probability of profit versus loss. These investments are often misrepresented by brokers as fixed income or bond-like options that provide a return of capital. Given the high risk of loss relative to corporate debt and other fixed-income options, structured products are generally unsuitable as fixed-income alternatives.
Recently, firms have begun selling redeemable structured notes often linked to a single investment or a basket of investments. A couple of examples of structured products linked to single securities shows the extreme risk of these products without meaningful benefit. Our firm assessed a structured note linked to Peloton’s stock that provided investors with 1.0625% interest per month (12.75% annually) and another note tied to Zillow’s stock, offering a 12% annual interest paid monthly, conditional on the stock prices maintaining a level above the referenced value. Only if both stocks depreciate by nearly 40% would the interest payment be entirely removed. In addition, if the stocks lost more than approximately 40% of their value then the investor would also lose their corresponding principal based upon the performance of the stocks and could lose their entire investment. Further, the notes were callable and could be cancelled by the sponsor.
These products are very high risk and low reward propositions because the investor can only profit at most by 12-12.75% over the course of one year. Even if Peloton or Zillow doubled in value all the investor could achieve would be the interest payment as their profit and none of the price appreciation. Meanwhile the maximum loss is 100% of the investment if the stocks fell severely. Accordingly, the investor takes dramatic downside risks associated with the volatile stocks while having no chance to participate in the success of the stock.
According to newsources, a study revealed that 7.3% of financial advisors had a customer complaint on their record when records from 2005 to 2015 were examined. Brokers must publicly disclose reportable events on their BrokerCheck reports that include customer complaints, IRS tax liens, judgments, investigations, terminations, and criminal cases.
Ferguson entered the securities industry in 2008. Ferguson has been registered as a Broker with Wealth Enhancement Brokerage Services, LLC since 2023.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.