Securities Lawyers Blog
The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Broker Edward Hill (Hill), currently employed by LPL Financial 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), Hill’s most recent customer complaint alleges that Hill 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 $300,000.00 on July 01, 2025.
Claimant alleges his financial professional recommended an unsuitable investment in structured notes from April 2021 – July 2025.
Marketlinked data drives the performance of structured products, which are a type of derivative. A structured product typically relies on a reference source to assume market risk. The origin could be a single security, multiple securities such as a market index, commodities, interest rates, or a real estate loan portfolio. The variety of products that can be structured demonstrates the difficulty in formulating a single unified definition of a structured product.
Since large banks issuing structured products seek to maximize their profits, these products often provide suboptimal risk/return profiles relative to traditional debt or equity instruments due to the spread between investor payouts and the revenues generated from issuing structured notes, minus 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. 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. Several examples of structured products tied to individual securities highlight the extreme risks of these investments without providing significant benefits. Our firm reviewed a structured note linked to Peloton’s stock, which offered investors a 1.0625% monthly return (12.75% annually), along with another note connected to Zillow’s stock that promised 12% annual interest paid monthly, provided the stock prices remained above a reference value. A decline of around 40% in both stocks would be required for the interest payment to be fully wiped out. 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.
Hill entered the securities industry in 2012. Hill has been registered as a Broker with LPL Financial LLC since 2018.
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.