Securities Lawyers Blog
The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Broker Michael Lader (Lader), 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), Lader’s most recent customer complaint alleges that Lader 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 $100,000.00 on April 17, 2026.
Customer alleges that in December 2021 the registered representative recommended a 1035 exchange into a Variable Universal Life and the purchase of a variable long-term care product that were unsuitable, improperly structured, and intended to generate commissions. The allegations include failure to provide an illustrated rider and underfunding leading to declining value.
Structured products are a class of derivative products that derive their performance from market linked data. The market risk of a structured product is typically linked to an underlying reference. 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. Due to the intricate nature of these products, many investors will lack the ability to accurately weigh their merits or estimate the probability of returns versus losses. Brokers frequently describe these investments to clients as fixed income or bond-like, despite their true nature. The risk of loss in structured products is significantly higher than in corporate debt and other fixed-income options, making them an unsuitable fixed-income alternative.
Recently, firms have begun selling redeemable structured notes often linked to a single investment or a basket of investments. The extreme risk of structured products associated with single securities is evident in multiple examples, showing little to no real benefit. We analyzed a structured note associated with Peloton’s stock that guaranteed investors 1.0625% monthly interest (12.75% annually) and a similar note tied to Zillow’s stock, offering 12% annual interest paid monthly, contingent on the stock prices staying above a specified level. Only if both stocks depreciate by nearly 40% would the interest payment be entirely removed. 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.
Lader entered the securities industry in 2006. Lader has been registered as a Broker with Ameriprise Financial Services, LLC since 2024.
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.