In June 2024, a Customer Dispute was reported on Jacobi’s FINRA Brokercheck report alleging that Jacobi provided “poor and speculative” advice resulting in losses. The customer sought damages in excess of $150,000.

Bixby Law PLLC is investigating allegations that Jacobi recommended speculative stocks like Ebix Inc., including allegations that Jacobi recommended significant concentrations in Ebix. Ebix was a software and e-commerce services supplier. In December 2023, Ebix filed for bankruptcy in the midst of fallout from auditing questions as reported by the Wall Street Journal. Ebix’s stock price has cratered losing nearly 100% of its value in the past several years.

Brokers and Financial Advisors owe legal obligations under securities industry rules and regulations, including the rules of the Financial Industry Regulatory Authority (FINRA) and the Securities & Exchange Commission (SEC). Recommendations in concentrated holdings or risky positions that are inappropriate, unsuitable, or not in the best interest of the customer may be violations of the rules and regulations, and investors who have suffered losses due to inappropriate recommendations may be entitled to file a claim to recover their losses.

Investors who have suffered losses with Ameriprise and Christopher John Jacobi are encouraged to reach out to Bixby Law PLLC and attorney Michael Bixby for a free and confidential consultation. Bixby Law PLLC is located at 4300 Bayou Blvd., Suite 16, Pensacola, FL 32503 and Attorney Michael Bixby may be reached by phone at (850) 332-6945 or via email at Michael@BixbyLawFirm.com. Bixby Law PLLC represents investors on a contingency fee basis. This means upfront costs are not charged and clients will only pay Bixby Law PLLC’s attorney’s fees and costs incurred out of the funds recovered on their behalf.

Structured products are complex securities and investment products which are typically derived from one or multiple securities or even a market index, commodities, or even currencies. The terms and features of complex Structured Products vary wildly and may be difficult for retail investors to understand. Some Some structured products and notes come with principal protection, and others offer no protection or very limited protection. Structured products normally come with two components – the note and a derivative. The note feature of the product typically pays interest periodically, and the derivative component which sets payment at maturity. As such structured products are often compared to options contracts or options trading.

Structured Products – Regulatory Warnings

The Regulatory Organization FINRA which oversees brokers and brokerage firms has long warned of the risks of offering such products, particularly to retail investors. While structured notes and other structured products may be marketed as alternatives to debt and fixed income investments, FINRA has warned that “the potential loss of the principal for many such products may make them unsuitable for investors seeking alternatives to debt securities.” Consequently, FINRA has cautioned financial advisors against misrepresenting such investments as “conservative” or “predictable” and instead likened structured products as “more akin to an option contract.”

Finally, FINRA imposes strict obligations on brokerage firms who recommend such products, including the obligations to:

1. Due Diligence & Training: Conduct adequate due diligence of the product recommended and training of their financial advisors
2. Suitability/Best Interest: Determine that the recommendation is suitable or in the best interest of the customer;
3. Fair & Balanced Presentation: Any sales presentation of the risks and the
4. Supervision: Diligent supervision of financial advisors who recommend structured products.

Because of these strict requirements brokerage firms and advisors that violate any of these obligations may be subject to liability and damages for their conduct.

Did You Own a Problematic Structured Product or Note?

The analysis of your Structured Product or Structured Note may be extremely complex. There are a wide variety of banks and financial institutions that issue these types of Structured Products, such as:

• Bank of Montreal (BMO)
  • Including BMO Autocallable, BMO Notes, Barrier, Accelerator, Callable
• Barclays Bank PLC
  • Including Barclays Bank PLC Note Convertible Security Linked, Barclays MTN (Medium Term Note) Security Linked Convertible
• BNP Paribas
  • Including BNP Paribas Note, BNP Paribas Note Convertible Security Linked (CONV SCRTY LNKD), BNP Paribas Note Monthly Variable (Mthly Var)
• Citigroup Global Markets
  • Including the Citigroup Medium Term Note (MTN) Security Linked products
• Credit Suisse AG
  • Including the Credit Suisse AG London Branch Note Security Linked products
• GS Finance Corporation
  • Including the GS Finance Corp. Note Security Linked products
• Morgan Stanley Finance LLC
  • Including the Morgan Stanley Fin LLC Sr Medium Term Note (MTN) Security Linked and Morgan Stanley Finance LLC Note M/W Callable Security Linked (Clbl Scrty Lnkd)
• Societe Generale S.A.
  • Including the Societe Generale Note, Societe Generale Note Convertible Security Linked, Societe Generale Note M/W Callable Security Linked, Societe Generale Note Var, Socete Generale Unsecured, Societe Generale Medium Term Note (MTN)

If you have suffered losses investing in Structured Products or Structured Notes, you may have a legal right to recover your losses. Bixby Law PLLC represents investors on a contingency fee basis and does not charge upfront costs or fees. You will only be charged attorney’s fees by Bixby Law PLLC if a recovery is made for you. Contact us today for a free and confidential evaluation, toll free at (833) 547-4994 or email attorney Michael Bixby directly at Michael@BixbyLawFirm.com.