Articles Tagged with options fraud lawyer

shutterstock_180342179-300x200The 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.

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shutterstock_175137287-300x200According 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.

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