Structured Product Fraud Law Firm

New York Family Sues Osaic Wealth Over Structured Product Losses

Osaic Broker Allegedly Unsuitably Recommended an Auto-callable Contingent Coupon Equity Linked Note

The Shepherd Smith Edwards and Kantas Structured Product Fraud Law Firm (investorlawyers.com) is representing a mother and daughter in their FINRA lawsuit against Osaic Wealth (FKA Woodbury Financial Services). The claimants, who are both older investors, worked with Osaic broker Joseph Barnas.

From the start, these New York investors made it clear that they did not want to take on any undue risks and needed for their assets to last the rest of their lives. Barnas knew this as he was their financial advisor for well over a decade even before he became an Osaic registered representative. Yet, he allegedly unsuitably recommended an Auto-callable Contingent Coupon Equity Linked Note. Not only that but this NY broker overconcentrated the family’s assets in this questionable structured product. Now, the claimants are looking at a complete loss of the principal they invested.

In their investment loss recovery claim, in which they are seeking up to six-figures in damages, the family is alleging unsuitable actions, misrepresentations and omissions, a gross lack of supervision, negligence, excessive concentration, gross negligence, breach of contract, breach of fiduciary duty, and more.

Why You Should Hire Seasoned Structured Product Loss Recovery Attorneys

Structured products, including Auto-callable Contingent Coupon Equity Linked Notes, are high-risk, complex investments. FINRA describes them as “securities derived from or based on a single security, a basket of securities, an index, a commodity, a debt issuance and/or a foreign currency.” Usually issued by investment banks or their affiliates, structured products have a set maturity date. They are generally not suitable for retail investors, conservative retirees, and others unwilling to take on too much risk.

However, structured products tend to pay high commission rates, which makes them very attractive to brokers. Structured notes typically pay financial advisors a “sales concession”, i.e. a hidden commission, of 2% to 5%. Because these are relatively short-term investments, the commissions on these assets, which have a naturally high turnover rate, will keep occurring.

The Shepherd Smith Edwards and Kantas Structured Product Fraud Law Firm has been fighting for investors against broker-dealers and investment advisers for more than 30 years. We have represented clients in more than 1000 matters, including the most complex kinds of investments, in arbitration, mediation, litigation, and negotiations. We have the skills, resources, and experience to provide you with quality securities representation and personalized attention.

Representing Investors Against Osaic Wealth

According to Joseph Barnas’s CRD, he has been an Osaic Wealth broker since 2024—although although he was with the firm since 2018 when it was still known as Woodbury Financial Services. Previous to that, he worked at several other broker-dealers during his 20 years in the industry. He also runs Barnas Financial out of New York.

Osaic Wealth has come under scrutiny over various regulatory issues. The broker-dealer has also been involved in numerous customer complaints over alleged financial advisor misconduct and sales violations by its registered representatives. Recently, one of its former brokers, Marat Likhtenstein, faced criminal charges accusing him of running a $1.24M Ponzi scam.

Contact Our Structured Product Fraud Law Firm Today

Throughout the US, call (800) 259-9010. In New York, call the Shepherd Smith Edwards and Kantas Structured Product Fraud Law Firm  (716) 261-3529. You can also fill out this form.