Stifel Faces Mounting Arbitration Losses Over Chuck Roberts' Structured Note Sales

Posted on July 29th, 2025 at 12:49 PM
Stifel Faces Mounting Arbitration Losses Over Chuck Roberts' Structured Note Sales

From the desk of Jim Eccleston at Eccleston Law

Stifel Financial has reached another substantial settlement connected to a controversial structured note strategy promoted by Miami-based broker Chuck A. Roberts. According to FINRA records, the firm agreed to pay $13.5 million to former clients of Roberts — more than double the $5 million originally sought in their claims alleging breach of fiduciary duty and fraud.

As reported by AdvisorHub, this latest settlement adds to a growing list of large awards and settlements tied to Roberts’ structured note sales. In March, a FINRA arbitration panel ordered Stifel to pay a staggering $133 million in damages, far surpassing the $30 million claim, a decision that sent ripples through the industry given the scale of the award and the number of similar pending cases. Stifel since has moved to vacate that decision in court.

Despite its public stance that Roberts’ clients were sophisticated investors who knowingly assumed the risks involved, Stifel has continued to settle related claims. In April, the firm paid $16 million to resolve a case where customers sought just $5 million in damages. Other settlements include a $2 million payout in March to settle a $1 million claim, and $205,000 paid in February to resolve a matter seeking between $100,000 and $500,000.

Roberts, a 35-year industry veteran, moved to Stifel from Morgan Stanley in 2019. Court documents show that over his career, Roberts earned approximately $61.4 million in commissions from selling $3.7 billion worth of structured notes. AdvisorHub reports that some of the notes were tied to volatile technology stocks such as Dynatrace, Palantir, Twilio, and DocuSign.

While arbitration results for Stifel have varied, many outcomes have skewed heavily against the firm. In November, a panel awarded $2.4 million to an ex-client of Roberts seeking $5 million. Another October 2024 decision delivered $14.3 million to a claimant asking for $5 million. Notably, a customer claim seeking $110,000 in June was denied.

According to AdvisorHub, Roberts currently faces roughly 20 pending customer complaints, collectively seeking about $40 million in damages, according to Roberts’ BrokerCheck report.

 

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

Tags: eccleston, eccleston law, stifel

Return to Archive

TESTIMONIALS

Previous
Next

I have the best legal firm in the country to defend me. Awesome job!

Cindy C.

LATEST NEWS AND ARTICLES

October 30, 2025
SEC Sues Former Franchise Group CEO Over $350 Million Hedge Fund Fraud

The Securities and Exchange Commission (SEC) filed a lawsuit against Brian Kahn, former CEO of Franchise Group Inc., alleging he defrauded investors of more than $350 million in a multi-year investment adviser fraud tied to the collapse of Prophecy Asset Management (Prophecy).

October 29, 2025
FINRA Foundation Study Reveals Alarming Investor Susceptibility to Fraudulent Offers

The FINRA Investor Education Foundation (FINRA Foundation) has released preliminary findings from its upcoming report, Investors in the United States: A Report of the National Financial Capability Study.

October 28, 2025
UBS Seeks Court Order Against $1.4 Billion Florida Advisory Team Over Client Solicitation Allegations

UBS Wealth Management USA has filed a lawsuit and requested a temporary restraining order (TRO) against a $1.4 billion advisory team that recently departed to join Elevation Point, a West Palm Beach-based registered investment advisor launched just 15 months ago.