Investment Products
Complex investment products often carry hidden risks, high fees, and liquidity restrictions that brokers fail to disclose. If you lost money in any of these products due to broker misconduct, unsuitable recommendations, or fraud, contact Varnavides Law for a free case evaluation. Attorney Gary Varnavides spent 10 years defending broker-dealers and knows how these products are sold — and how to build a case when they are sold improperly.
Alternative Investments
Alternative investments include private placements, non-traded REITs, BDCs, and other illiquid products typically sold to accredited investors. These products carry high commissions for brokers (often 7-10%), long lock-up periods, and limited transparency — making them frequent sources of suitability claims when recommended to retail investors who cannot afford the risk.
Alternative Investment Fraud
Business Development Companies
Syndicated Conservation Easements
Non-Traded REITs
Private Placements
Structured Products and Notes
Structured products combine derivatives with traditional securities to create complex payoff profiles that most retail investors do not fully understand. Brokers earn substantial commissions selling these products while downplaying risks like principal loss, credit exposure, and early redemption penalties. Misrepresentation of structured product risk is one of the most common claims in FINRA arbitration.
Collateralized Loan Obligations
Equity-Linked Notes
Junk Bonds
Preferred Securities
Reverse Convertible Notes
Insurance and Annuity Products
Insurance-linked investment products like variable annuities and variable universal life policies generate some of the highest commissions in the industry. Brokers frequently recommend annuity switches and 1035 exchanges that reset surrender periods and generate new commissions while providing little benefit to the client. These products are among the most commonly complained-about in FINRA arbitration.
1035 Annuity Exchanges
Variable Annuities
Variable Universal Life
Exchange-Traded Products
Exchange-traded funds and related products range from straightforward index trackers to highly complex leveraged and inverse products that can lose substantial value in a single day. Brokers who recommend leveraged ETFs, inverse ETFs, or closed-end funds to buy-and-hold investors often violate suitability requirements because these products are designed for short-term trading strategies.
Closed-End Funds
Exchange-Traded Funds
Inverse ETFs
SPAC Investments
Derivatives and Speculative Products
Options, futures, and other speculative products involve leverage that can amplify losses far beyond the original investment. These products require sophisticated understanding and active management. When brokers recommend speculative strategies to inexperienced or conservative investors, they violate suitability obligations and may be liable for resulting losses.
Cryptocurrency
Commodity Futures
Managed Futures
Options Fraud
Penny Stocks
Zero-Day Options (0DTE)
Municipal Bonds
Municipal bonds are often marketed as safe, income-producing investments, but certain municipal bond products can carry significant risks, including liquidity constraints, credit deterioration, and project-specific default exposure. These investments require careful evaluation of credit quality, revenue sources, and market conditions.
Housing Revenue Bonds
Puerto Rico Bonds
Other Investment Products
Additional investment products that frequently appear in FINRA arbitration claims include energy investments, tax-deferred exchange programs, brokered CDs, and securities-backed lending. Each carries unique risks that brokers are obligated to disclose and that must be suitable for the individual investor.
1031 Exchange Investments
Brokered CDs
Energy Investments
Master Limited Partnerships
Securities-Backed Credit
Lost Money in a Complex Investment Product?
Attorney Gary Varnavides spent 10 years defending broker-dealers before founding Varnavides Law to represent investors. If your broker recommended an unsuitable investment product, we can help you pursue recovery through FINRA arbitration.
Free Case Evaluation