Important Notice to Clients of AE Wealth Management Who Suffered Significant Investment Losses in Structured Notes
If You Suffered Investment Losses with AE Wealth Management, Contact the Law Firm of KlaymanToskes
TOPEKA, KS / ACCESSWIRE / December 11, 2024 / National investment loss and securities lawyers KlaymanToskes issues an important notice to customers of AE Wealth Management after the brokerage firm's recommendations and alleged misrepresentations of structured note investments caused an investor to suffer $500,000 in damages. The law firm urges all customers of AE Wealth Management who suffered significant investment losses to contact the firm immediately at 888-997-9956.
KlaymanToskes reports the firm has filed a AAA arbitration claim (AAA# 24-0285-01940) against AE Wealth Management on the behalf of an investor who is seeking to recover damages of $500,000, in connection with being recommended to invest in unsuitable structured note investments by his financial advisor, Kai Kahauanu (CRD# 4973274).
According to the lawsuit filed by KlaymanToskes, the customer is a retired and unsophisticated investor who entrusted AE Wealth Management ("AEWM") and investment advisor Kai Kahauanu to provide income-generating investments that would safeguard his principal. Instead, AEWM and its advisor placed over 50% of his liquid net worth into four high-risk, illiquid structured notes tied to volatile stocks such as Amazon (NASDAQ:AMZN), Tesla (NASDAQ:TSLA), Netflix (NASDAQ:NFLX), and Zoom (NASDAQ:ZM). The investments included three Morgan Stanley Structured Notes and a Barclays Structured Note.
AEWM allegedly misrepresented the structured notes as safe investments that would provide income and the return of the principal at maturity. However, structured notes are speculative and highly illiquid investments, exposing the investor to substantial risk. The risks of structured notes include risk of adverse market conditions, issuer credit quality risk, risk of counterparty or issuer default, risk of high volatility, and risk of illiquidity. Despite AEWM's assurances to the customer, the investments significantly declined in value.
The law firm's investigation found that the only economic justification to overconcentrate the customer's portfolio in structured notes was to enrich the financial advisor through the significant commissions paid by the investments. Structured Notes have larger commissions than stocks, mutual funds and bonds whereby the customer pays between 8% to 12% at the time of purchase.
Current and former customers of AE Wealth Management who suffered investment losses are encouraged to contact attorney Steven D. Toskes, Esq.at (888) 997-9956 or by email at investigations@klaymantoskes.com in furtherance of our investigation.
About KlaymanToskesKlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.Contact:
KlaymanToskes, P.A.Steven D. Toskes, Esq.888-997-9956investigations@klaymantoskes.comwww.klaymantoskes.com
SOURCE: KlaymanToskes
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