Securities Lawyers Blog
Currently financial advisor Eric Felsenfeld (Felsenfeld), currently employed by brokerage firm Ameriprise Financial Services, LLC has been subject to at least 2 disclosable events. These events include 2 customer complaints. According to a BrokerCheck reports most of the recent customer complaints concern either corporate debt securities or alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $250,000.00 on March 30, 2026.
Claimant seeks $200,000\\u2013$300,000 relating to two separate matters: (1) a $58,000 GWG L Bond purchase that was rendered worthless by GWG’s subsequent bankruptcy; and (2) a leveraged private placement strategy that performed poorly following distribution suspensions and increased borrowing costs. Notably, the claimant was able to redeem one of the three private placements (Braemar), and the Spring Hills position, while currently suspended, has not been written off. The claim is filed by Iorio Law, a plaintiffs’ firm, and relies heavily on hindsight.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $200,000.00 on March 30, 2026.
Non-traded REITs, oil and gas ventures, equipment leasing products, and other alternative investments are among the products included in DDPs. With high fees and costs, these alternative investments are usually inappropriate for investors and rarely provide meaningful returns. Brokers earn additional commissions for promoting these low-quality investments, fostering a system of skewed incentives that result in an artificially sustained market.
Several studies have confirmed that Non-traded REITs underperform publicly traded REITs with some showing that Non-Traded REITs cannot even beat safe benchmarks, like U.S. treasury bonds. Brokers are supposed to warn investors that non-traded REITs offer lower returns than treasuries while being risky and illiquid—however, this disclosure is often neglected. Because additional returns do not compensate investors for increased risk and illiquidity, these alternative investment products are hardly ever suitable for investors.
Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client after conducting due diligence. Due diligence includes an investigation into the investment’s properties including its benefits, risks, tax consequences, issuer, history, and other relevant factors. Appropriate due diligence would identify that an alternative investment’s high costs, illiquidity, and conflicts of interests that would make the investment not suitable for investors. Investors often fail to understand that they have lost money until many years after agreeing to the investment. In sum, for all of their costs and risks, investors in these programs are in no way additionally compensated for the loss of liquidity, risks, or cost.
Unfortunately, these types of alternative investment products continue to popular among brokers due to their high commissions. In order to counter the perverse incentives to sell these flawed product many states now limit investors from investing more than 10% of their liquid assets in Non-Traded REITs and BDCs. Many states impose these limitations because these investments do not benefit investors.
Felsenfeld entered the securities industry in 2002. Felsenfeld has been registered as a Broker with Ameriprise Financial 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.