Robert G. Stein and Reverse Convertibles
We are currently investigating allegations made by FINRA, the Financial Industry Regulatory Authority, regarding Robert G. Stein of Worcester, Massachusetts. FINRA alleged that Stein recommended that a number of his customers invest in reverse convertible notes from 2008 to 2011. FINRA alleged that these investments were unsuitable for his customers, who were mostly elderly and had moderate or conservative investment objectives or risk tolerances.
FINRA also alleged that Robert Stein’s clients had overconcentrations in their accounts of these products. To settle these allegations, Robert Stein agreed to a three-month suspension and paid a $5,000 fine.
Reverse convertibles are investments in interest-bearing notes, where the principal investment is linked to the performance of an asset, often a stock or index. At the maturity of the note, the investor may get their principal investment back. However, at maturity, if the value of the reference stock or index is below a certain level or threshold (called the “knock-in level”), then the investor may receive shares of the underlying investment or get a cash equivalent. These investments could expose investors to substantial losses. Reverse convertibles, which are structured investments, have limited liquidity and complex payment structures that some financial advisors and customers may not adequately understand.
Robert G. Stein is a financial advisor and registered representative of Capitol Securities Management from 2003 to the present. He worked at a branch office in Worcester, Massachusetts. Stein has at least four customer complaints on his record.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James Financial Services, ProEquities, Securities America, National Securities Corp., and many others.
Click to view: Stein FINRA AWC
Click to view: Stein BrokerCheck 2.26.16
HAVE YOU LOST MONEY WITH ROBERT G. STEIN, CAPITOL SECURITIES MANAGMENT OR REVERSE CONVERTIBLES?
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