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
BDC Fraud
Conservation Easement
Non-Traded REIT Fraud
Private Placement Fraud
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.
CLO Fraud
Equity-Linked Notes
Junk Bond Fraud
Preferred Securities Fraud
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 Exchange
Variable Annuity Fraud
VUL Fraud (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 Fund Fraud
ETF – Exchange-Traded Fund
Inverse ETF Fraud
SPAC Fraud
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 Fraud
Futures Fraud
Managed Futures Fraud
Options Fraud
Penny Stock Fraud
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 Fraud
Brokered CD Fraud
Energy Investment Fraud
MLP Fraud
Securities-Backed Credit Fraud
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