Did You Suffer Leveraged ETF Losses While Working With Former Ameriprise Broker George Snyder IV? Our Exchange-Traded Fund Lawyers Can Help You Determine Whether Broker Misconduct Was A Factor
While there is the potential for making huge gains with a leveraged exchange-traded fund (leveraged ETF), there is also the risk of huge losses. This can be especially devastating if you are a retail investor who was unsuitably recommended this alternative investment by your financial advisor. Shepherd Smith Edwards and Kantas (investorlawyers.com) represent ETF investors with securities fraud claims against their broker-dealers.
We are currently investigating leveraged ETF losses involving former customers of suspended Ameriprise Financial broker George Snyder IV. The ex-Missouri financial advisor recently consented to a five-month suspension term and a $10K fine to settle Financial Industry Regulatory Authority (FINRA) findings alleging that he unsuitably recommended investments—non-traded exchange-traded products (NT-ETPS), particularly leveraged ETFs—that were not in some customers’ best interests.
FINRA found that in 2022, Snyder purportedly unsuitably recommended to 18 retail customers that they invest in these securities without conducting the proper legwork to make sure they were appropriate for them. The self-regulatory organization (SRO) also said that Snyder lacked a proper understanding of leveraged ETFs’ risks and features.
These customers sustained $30K in losses and Ameriprise has offered rescission. According to Think Advisor, the broker-dealer terminated Snyder as one of its registered representatives in 2022.
Leveraged ETF Losses And Retail Customers
Retail customers are generally inexperienced investors who lack the risk tolerance level or require investing knowledge to get involved in leveraged ETFs. According to FINRA, NT-ETPs aren’t usually recommended to retail investors.
This is a pooled investment made up of a group of securities that follows a certain index while utilizing debt and derivatives to enhance returns by two or three factors. The majority of leveraged ETFs reset on a daily basis. Amplified returns can lead to serious losses within a short time and serious market volatility can also cause substantial losses.
Broker-dealers and their registered representatives are supposed to conduct the proper due diligence to ensure that an investment is appropriate for a customer given their investing goals, age, risk tolerance level, portfolio, and more. When supervisory failures by the firm enables a broker to make unsuitable investment recommendations, disregard an investor’s best interests by making that recommendation, or engage in some other type of financial advisor fraud or negligence, the customer who was harmed may be able to sue for damages.
Why Hire Our Skilled Leveraged Exchange-Traded Fund Loss Attorneys?
Shepherd Smith Edwards and Kantas represent investors who have sustained losses in all kinds of exchange-traded funds. We understand the complex nature of these investments and how to pursue damages from the financial advisor and/or their firm that should be held responsible.
Suing a broker-dealer for investor losses is never easy. This is why it is important that you retain skilled ETF fraud lawyers who understand how to determine the cause of your losses and who have the experience and knowledge to build a solid claim on your behalf. We have been representing investors against brokerage firms and investment advisors for over 30 years. More than 90% of our clients have partially or fully recouped their losses with our help. Call (800) 259-9010 or contact us online to schedule your free, initial case assessment.