Investigation: Put Option Strategy Implemented by Sheaff Brock Investment Advisors, in TD Ameritrade Customer Accounts

At Sonn Law Group, our securities fraud lawyers are currently investigating claims that Sheaff Brock Investment Advisors, LLC (CRD# 118739 / SEC# 801-60978) implemented unsuitable investment strategies in brokerage accounts of TD Ameritrade customers.

In January of 2018, a class action lawsuit was filed by a group of investors against Sheaff Brock Investment Advisors in a federal court in Illinois. According to the lawsuit, the firm used an aggressive, unsuitable put option strategy on behalf of these conservative investors.

Allegations of Broker Misconduct: Unsuitable Put Option Investment Strategy

In investing, a ‘put option’ or ‘put’ is a stock market instrument that gives the owner the right — not the obligation — to sell the asset at a predetermined price on a predetermined date. To make money investing in put options, the put buyer needs the price of the underlying stock to go down. If the investor is on the wrong side of this investment, there is a possibility that they will sustain significant losses.

Put options are considered to be a risky investment strategy. They are not considered to be appropriate or suitable financial products for conservative investors.

The federal lawsuit alleges that Sheaff Brock Investment Advisors misrepresented the put option strategy to TD Ameritrade customers. The investment advisory firm is alleged to have pushed this relatively risky strategy on customers who were seeking conservative and safe investments. Notably, TD Ameritrade obtained financial benefits from referring its customers to Sheaff Brock.

Speak to a Securities Fraud Attorney

At Sonn Law Group, we represent investors in disputes against broker-dealers and financial advisors. If you lost money because your brokerage firm implemented an unsuitable investment strategy, our law firm can help. For a free, no obligation consultation, please call us today.

Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.