Sanford Bernstein & Co. and Alliance Bernstein Face FINRA Arbitration Claim Over Options Advantage Strategy

Posted on March 22nd, 2023 at 2:08 PM
Sanford Bernstein & Co. and Alliance Bernstein Face FINRA Arbitration Claim Over Options Advantage Strategy

From the desk of Jim Eccleston at Eccleston Law

Sanford Bernstein & Co. and Alliance Bernstein (Bernstein) are facing what could be the
first of several Financial Industry Regulatory Authority (FINRA) arbitration claims related to its
Options Advantage Strategy.
The arbitration claim, filed by a Utah-based couple, accuses the advisors of
recommending a new complex options strategy in early 2018 called “Options Advantage”, which
was described as “seeking incremental return in a low yield environment.” According to the
claim, the investment was pitched as a low-risk method of earning an additional 1-2% annually
on assets already held at the firm. Instead, Bernstein allegedly purchased and sold a series of
S&P 500 call and put options, which resulted in substantial losses for many investors.

The claim accuses Bernstein of misrepresenting material information in promoting the
Options Advantage Strategy from 2018 through October 2022. Bernstein issued a letter in
October 2022 informing investors that the purported strategy was not suitable for current market
conditions and that the firm unilaterally would close out clients’ positions – at a loss. The Utah-
based couple allegedly lost half of a million dollars and is now pursuing reimbursement of their
losses, account fees, attorneys’ fees, expenses, and treble damages.
Eccleston Law LLC is investigating Options Advantage Strategy claims.

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

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

June 24, 2025
Dr. Cash Sentenced for Defrauding Retirees

Terrence Chalk, an unregistered investment advisor who operated under the alias “Dr. Cash,” has been sentenced to three years in prison for orchestrating a fraudulent investment scheme that defrauded millions from unsuspecting victims.

June 23, 2025
FINRA Fines AAG Capital for RILA Exchange Violations

The Financial Industry Regulatory Authority (“FINRA”) has fined AAG Capital $100,000 and ordered the firm to pay nearly $39,000 in restitution after finding it violated Regulation Best Interest (“Reg BI”) by recommending costly registered index-linked annuities (“RILAs") to retail clients in unsuitable product excha...

June 19, 2025
SEC Charges Former Real Estate CEO in $46 Million Investment Fraud Scheme

The Securities and Exchange Commission (“SEC”) has charged Kenneth Mattson, former CEO of LeFever Mattson, with orchestrating a $46 million investment fraud scheme that targeted approximately 200 investors, many of them retired senior citizens
from his church community in California.