options fraud lawyer

Anthony Gallea Has Complaints Over Complex Options Trading

October 5, 2022 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Anthony Gallea (Gallea) has at least four disclosable event. The four events are customer complaints alleging that Gallea engaged in some form of investment related misconduct in the handling of the client’s accounts. Gallea is currently employed by Morgan Stanley. Gallea’s customer complaints alleges that Gallea recommended unsuitable investments in a complex options trading strategy among other allegations and complaints.

In May 2022 a customer complained that Gallea violated the securities laws by alleging that Gallea unsuitability with respect to option trading strategy implemented in the account from 2018 through 2022. The claim is currently pending.

In April 2022 a customer complained that Gallea violated the securities laws by alleging that Gallea unsuitability with respect to option trading strategy implemented in the account from 2019 through 2021. The claim is currently pending.

An option is a contract that allows an investor to buy or sell an underlying security at a predetermined price over a certain period of time. Buying an option that allows you to buy shares at a later time is called a “call option,” and buying an option that allows you to sell shares at a later time is called a “put option.” Options are considered derivative securities because their price is derived from the value of the securities or other underlying instruments. The value change in options as they approach expiration is what is called time decay – meaning their value decays over time as expiration nears. Accordingly, an options trading strategy involving many options trades needs to be managed closely. Due to the risks of trading options FINRA has special rules and requirements related to their trading and to qualify investors for options trading.

Heather Weber Has Customer Complaints Over Options Trading

January 31, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Heather Weber (Weber), currently employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) has been subject to at least ten customer complaints during the course of her career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Weber’s customer complaints alleges that Weber recommended unsuitable investments in options among other allegations of misconduct relating to the handling of their accounts.

In September 2019 a customer complained that Weber violated the securities laws by alleging that Weber engaged in sales practice violations related to unsuitable investment recommendations and misrepresentations concerning options. The claim alleges $350,000 in damages and is currently pending.

In May 2017 a customer complained that Weber violated the securities laws by alleging that Weber engaged in sales practice violations related to unsuitable investment recommendations and misrepresentation from February 2012 to June 2014. The claim alleged $1,000,000 in damages and settled for $92,500.

There are different risky strategies that can employ options trading. One such strategy is the use of the iron condor, which involves the purchase of multiple uncovered options versus safer covered options. When an option is covered the investor holds an offsetting stock position in the asset underlying the option. The stock position can help offset the risk of the short position of the option. However, with an uncovered option the investor has unmitigated risk. If the underlying stock substantially drops or increases in value for an uncovered position the investor have only two options. Either the investor has to let the options expire and lose the entire investment or buy the stock at a disadvantageous price.

Izhar Shefer Subject to Multiple Investment Complaints Over Options Trading

May 29, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Izhar Shefer (Shefer), formerly employed by Morgan Stanley has been subject to at least ten customer complaints during the course of her career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Shefer’s customer complaints allege that Shefer recommended unsuitable securities recommendations in a variety of products including options trading among other allegations of misconduct in the handling of customer accounts.

In August 2018 a customer filed a complaint alleging that Shefer violated the securities laws by, among other things, that Shefer made unsuitable investments from 2011 to 2017. The alleged damages are $700,000 and the claim is currently pending.

In May 2018 a customer filed a complaint alleging that Shefer violated the securities laws by, among other things, that Shefer made unsuitable investments from 2015 to 2017. The claim settled for $26,840.

In September 2017 a customer filed a complaint alleging that Shefer violated the securities laws by, among other things, that Shefer made unsuitable investments from July 2015 to February 2017. The claim settled for $30,000.