Another settlement has been reached by Stifel Financial in the series of cases involving the risky structured note strategy of barred broker Chuck Roberts, according to AdvisorHub.
Stifel has paid out a total of $202 million to investors who complained that Roberts and Stifel misrepresented the risks of structured notes, resulting in substantial financial losses.
In the latest dispute, Stifel agreed to pay a group of investors $3 million to settle their claims. The clients had been seeking $5 million as part of their complaint filed in January 2025 that alleged breach of fiduciary duty and violations of the Securities and Exchange Commission’s Regulation Best Interest.
A Stifel spokesperson did not immediately respond to a request for comment. In prior cases involving complaints over Roberts’ strategies, Stifel contended that the clients were sophisticated investors who understood the risks involved.
The bulk of Stifel’s payments in the Roberts disputes was a $132.5 million arbitration award issued to a Miami man and his three children who said they were misled into believing that Stifel was using low-risk structured notes in their investments.
They contended that Stifel failed to exercise “any adequate supervision” as Roberts assured them that the structured notes would preserve their principal while offering long term average returns of 12.25%. Stifel agreed to a settlement in that case for an undisclosed sum.
The cases involving Roberts do not name him as a party but cite Stifel for failing to supervise him. According to Roberts’ BrokerCheck record, there are still 19 pending complaints against him seeking $28 million in combined damages.
Roberts, who left Stifel voluntarily in June 2025, was barred by FINRA after he declined to cooperate with its investigation into whether his recommendations were not in his clients’ best interests and whether he had inaccurately described the products to customers. Roberts did not admit or deny the allegations as part of the settlement.
In May, the Financial Industry Regulatory Authority announced that it will conduct a review of firm practices involving higher-risk structured products.
The move, which FINRA said is part of of its mission of protecting investors, specifically pertains to non-principal protected “worst-of” structured notes. These notes refer to principal-at-risk structured notes that may result in a reduction or cessation in interest payments, and/or a reduced return of principal at maturity, based on the worst-performing asset in a group of two or more reference assets.
The review is examining how firms supervise concentrations in these products, including how they comply with Regulation Best Interest and FINRA rules when their registered representatives recommend these products to investors.
The attorneys at Hyman Cotter PC are uniquely qualified to represent individual investors in investment-related claims against financial professionals and their firms. We understand how financial professionals and their firms are supposed to operate through decades of experience working for the SEC and firms like Morgan Stanley and UBS Financial Services. If you have suffered investment losses as a result of misconduct by your financial professional or their firms, contact Hyman Cotter PC at 833-665-0784 or through our online contact form for a free consultation.
