Securities Lawyers Blog
The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Broker Jesse Webb (Webb), currently employed by Ameriprise Financial 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), Webb’s most recent customer complaint alleges that Webb 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 $18,000.00 on May 12, 2025.
The client alleged that the advisor invested them in a Cleveland Cliffs structured note that was not in their best interest as it carried too much risk by being tied to one equity.
The performance of structured products, driven by the market data, are a type of derivative. A structured product typically relies on a reference source to assume market risk. It can originate from a single security, a group of securities such as a market index, commodities, interest rates, or a portfolio of real estate loans. The variety of products that can be structured demonstrates the difficulty in formulating a single unified definition of a structured product.
Most structured products tend to have less favorable risk/return profiles than traditional debt or equity instruments because large banks, which issue these products, aim to profit from the difference between what they pay investors and the returns they generate from issuing structured notes, after deducting commissions and fees for brokers. Most investors may struggle to grasp the benefits of these investments or accurately assess the likelihood of gains and losses due to their complexity. Some brokers mislead clients by portraying these investments as fixed income or bond-like assets that return capital. Structured products pose a greater risk of loss than corporate debt and other fixed-income alternatives, making them an inappropriate choice for fixed-income recommendations.
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. We conducted an analysis of a structured note based on Peloton’s stock, guaranteeing investors a 1.0625% monthly return (12.75% annually), and another note tied to Zillow’s stock, which offered 12% annual interest paid in monthly installments as long as the stock prices stayed above a predefined value. The interest payment remains intact unless both stocks experience a loss of about 40% of their value. 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.
Webb entered the securities industry in 1993. Webb has been registered as a Broker with Ameriprise Financial Services, LLC since 2021.
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.