Tr?id=566623520170033&ev=PageView&noscript=1

FINRA Arbitration Orders Stifel to Pay $133 Million Over Broker's Structured Note Strategy

Posted on March 28th, 2025 at 12:11 PM
FINRA Arbitration Orders Stifel to Pay $133 Million Over Broker's Structured Note Strategy

From the desk of Jim Eccleston at Eccleston Law

A FINRA arbitration panel has ordered Stifel Financial’s retail broker-dealer to pay nearly $133 million in damages related to a structured note investment strategy promoted by Miami-based broker Chuck A. Roberts. According to AdvisorHub, the award includes $80 million in punitive damages, $26.5 million in compensatory damages, and $26.5 million in attorneys’ fees.

The arbitration panel found that Stifel knowingly engaged in wrongful conduct that harmed the claimants. The firm failed to warn customers about overconcentration in limited industries and did not provide the required heightened supervision of Roberts. The panel also determined that Stifel permitted and encouraged the use of text messages to market “custom” structured note products, violating SEC recordkeeping requirements. AdvisorHub reports that these texts contained misleading terminology, further exacerbating the firm’s regulatory failures.

The $133 million award is the second largest in FINRA arbitration history, surpassing a recent $95 million decision against UBS. Roberts has been the subject of more than $48 million in pending damage claims from 18 complaints since 2022. Stifel has previously faced arbitration losses, including $2.4 million and $14.3 million in separate cases last year, and has settled additional claims.

According to AdvisorHub, a Stifel spokesperson criticized the ruling as excessive and stated that the firm intends to seek judicial review. The company argued that the claimants were sophisticated investors who understood the risks, selected their investments, and only complained after incurring losses.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

1794338007 Law
November 10, 2026
SEC Accuses Crypto Investment Scheme of Raising $130 Million Through Fake Approval Claims

The SEC has charged two entities with operating a cryptocurrency investment scheme that raised more than $130 million from tens of thousands of retail investors.

1794251609 Law
November 9, 2026
Court Restrains Former Citizens Advisor From Using His Memory to Recreate Customer Names in Transition to Ameriprise

A federal judge in Boston has temporarily barred former Citizens Securities advisor Darrell Smith from using client names he recalled from memory to contact former customers after moving to Ameriprise Financial.

1793987008 Law
November 6, 2026
CoreWeave Bonds Slide as Political Opposition to Data-Center Expansion Grows

CoreWeave's debt and stock price fell on November 4th as election victories by Democratic candidates opposing rapid data-center development raised concerns about the regulatory environment facing AI infrastructure companies.