The final arbitration award was issued on January 28, 2026.

View the Arbitration Award Here

Claims Brought on Behalf of Multiple Investors

The investors, represented by Israels & Neuman, PLC, asserted claims including breach of fiduciary duty, failure to supervise, negligence, breach of contract, and violations of FINRA rules arising from multiple securities investments.

Nearly $9.5 Million Awarded, Plus Ongoing Interest

The arbitration award holds Camarda and A.G. Morgan jointly and severally liable for the majority of the damages, with McArthur and A.G. Morgan jointly liable for a smaller portion.

Individual investor awards ranged from tens of thousands of dollars to more than $2.5 million, with interest accruing daily until the amounts are fully paid. In total, the panel awarded $9,494,007 in compensatory damages, along with costs and fees. All but one of the investors represented recovered damages in the case.

Media Coverage Highlights Pattern of Misconduct

The arbitration decision was reported by Financial Advisor IQ, which noted that A.G. Morgan and its principals have lost multiple arbitration cases in recent months, resulting in millions of dollars in awards to investors.

The report further noted that Camarda has failed to pay multiple prior arbitration awards or settlements, and that the respondents are defendants in an ongoing SEC enforcement action alleging the sale of unregistered securities to hundreds of investors.

View the Financial Advisor IQ Article Here

Frequently Asked Questions

What is FINRA arbitration?
FINRA arbitration is a dispute resolution process used to resolve disputes between investors and brokerage firms or investment advisers. Arbitration decisions are final and binding.

What does “joint and several liability” mean?
Joint and several liability means each responsible party can be held liable for the full amount of the damages awarded, regardless of how responsibility is divided among them.

Why did the panel enter a default judgment?
The panel entered a default judgment after the respondents failed to comply with discovery obligations and failed to appear at scheduled hearings.

Does winning a FINRA arbitration guarantee recovery?
No. While an arbitration award establishes liability, investors may still face challenges collecting the awarded amounts, particularly when respondents have a history of unpaid awards.

How can investors determine whether they have a claim?
Investors who suffered losses due to unsuitable investments, misrepresentations, or supervision failures should consult with an experienced securities attorney to evaluate potential claims.

Israels & Neuman Represents Investors Nationwide

Aaron Israels, who is the managing partner of Israels & Neuman PLC, represents investors nationwide in FINRA arbitrations and securities fraud matters involving unsuitable investments, private placements, promissory notes, and supervision failures.

Call today for a Free and Confidential Case Review

All of our arbitration cases are taken on a contingency fee basis, meaning no up-front costs!  Call us to discuss your potential case and let us help you recover the money you deserve.

(720) 599-3505

Shammi Samaroo Background

Shammi Samaroo was a representative of NYLife Securities from March 2016 to November 2024 and worked in a Sunrise, Florida office.  He was also licensed to sell insurance through NY Life Insurance.

NYLife Securities’s Potential Responsibility

Under FINRA Rule 3110, brokerage firms like NYLife Securities must reasonably monitor the activities of their representatives.  If the firms failed to adequately supervise Samaroo, they could be liable for any investor harm.

Our firm represents investors throughout the country as well as Florida, who have been victims of broker misconduct, unsuitable investment recommendations, and fraud. Attorney David Neuman is licensed to practice law in Florida.  If you were a client of Shammi Samaroo and believe he acted improperly, you may be entitled to recover losses through FINRA arbitration.

• View Shammi Samaroo FINRA AWC
• View his BrokerCheck Report

Contact Us for a Free Case Evaluation

Call us today at (720) 599-3505 or (206) 795-5798 or fill out our contact form to speak directly to an experienced attorney.

Grandway Suspends Distributions

The Grandway REIT recently suspended distributions or dividends to investors.  This is often a sign that the REIT is experiencing, or is expecting to experience, cash flow problems.  There is no determination as to when the REIT will resume making distributions or dividends to investors, if ever.  You may be able to recover money through FINRA arbitration.  The attorneys at Israels & Neuman offer a Free case review.

Brokerage Firms Selling Grandway REIT

Grandway REIT is a non-traded REIT, meaning that it does not trade on a stock exchange like the NYSE or NASDAQ.  In order for investors to invest in the Grandway REIT, they typically invest either directly through the company, or through a licensed financial advisor and brokerage firm.

According to the Grandway REIT’s Form D filing (filed with the Securities and Exchange Commission) in December 2022, Grandway paid sales compensation to several representatives of a brokerage firm called H&L Equities, LLC.   H&L is a FINRA (Financial Industry Regulatory Authority) member and securities brokerage firm based in Atlanta, Georgia.  According to the Form D filing, representatives of H&L solicited investors in Georgia, Florida, and Texas. 

There may be other brokerage firms that have sold Grandway REIT investments.

What Can I Do to Recover My Losses?

Grandway REIT investors should consider their options and consult with a law firm that handles FINRA securities arbitration matters.  The law firm of Israels & Neuman offers a free case review for investors of Grandway REITs.

Financial advisors have obligations to make investment recommendations that are suitable or proper for the investor, considering their age, risk tolerance, financial resources, and other considerations.  If your stockbroker or financial advisor that recommended Grandway made unsuitable investment recommendations, the advisor or their brokerage firm could be liable for any financial damages.

Investors have the right to bring claims against their advisors or brokerage firms in FINRA arbitration.  FINRA regulates the securities brokerage industry and also provides a forum for aggrieved investors to bring claims against advisors and firms. 

Free Consultation for Grandway Investors

Our case reviews are always Free and Confidential.  If you invested in the Grandway real estate investment trust, we encourage you to speak with us as soon as possible about your options for recovery.

📞 Call Israels & Neuman at (720) 599-3505 or (206) 795-5798
🖥️ Visit www.israelsneuman.com
📧 Contact us online to schedule your free case review

Coinbase is well-known as being a platform where investors can buy and sell cryptocurrency investments such as Bitcoin or Ethereum. As of December 2024, Coinbase had $404 billion of assets on its platform (according to the Coinbase website) and is the only major publicly traded cryptocurrency exchange in the United States. Thus, it is no surprise that many U.S. investors trust and use Coinbase to trade crypto.

The new Arbitration Agreement went into effect for investors who signed up for Coinbase on or after March 27, 2025.  Starting May 15, 2025, the Arbitration Agreement will be updated for existing Coinbase account holders. 

What Did the Coinbase Arbitration Agreement Previously Require?

Under Section 7 of the customer account agreement, customers agree to try to resolve any issues with Coinbase through its support team first.  If the customer and Coinbase are unable to resolve the issue, the customer agrees to use the Formal Complaint Process outlined in the customer agreement.  If that is unsuccessful, then the customer must file an arbitration claim as outlined in the Arbitration Agreement.

Under the previous Arbitration Agreement, customers agreed to bring any legal claim before the American Arbitration Association (or “AAA”).  The American Arbitration Association would administer the case under its Consumer Rules.  Moreover, the arbitration case would be held in the county where the customer resides.  Additionally, if the arbitration matter is considered to be a “Batch” arbitration (where the number of claimants or investors exceeds 100 people), then the cases could be consolidated into one matter under AAA.

What are the major changes with Coinbase’s Arbitration Agreement?

Under the new Arbitration Agreement, the arbitration provisions are very similar, but there are some new nuances.  First, if the customer’s claim could be resolved in Small Claims court in their local county court, then the case would be resolved in that Small Claims court and not in arbitration.

Secondly, if AAA is unable or unwilling to administer the case, or if the case is considered to be part of a Batch arbitration, then the arbitration would proceed before JAMS, another arbitration forum.  Additionally, the new Arbitration Agreement lowered the threshold for Batch arbitrations to be where the number of claimants or investors exceeds 25 people (while the old agreement had a higher threshold at 100 investors).  This could be detrimental to investors, as the JAMS forum tends to be much more expensive than cases administered under the Consumer Rules at AAA.

Who Do I Call For Coinbase Investment Losses?

If you are having issues with Coinbase and want to determine what your options are, please contact one of our experienced investment fraud attorneys at Israels & Neuman PLC.  Israels & Neuman has experience representing investors in several arbitration forums, including AAA, JAMS, and FINRA, and can guide investors through the arbitration process.

Call us today at (720) 599-3505

Familiarity with the Arizona Securities Act

Arizona enforces its own securities laws under the Arizona Securities Act (A.R.S. § 44-1801 et seq.), which governs how securities are offered, sold, and regulated in the state. These laws include strong investor protections, especially in cases of fraud, omissions, or the sale of unregistered investments.  Arizona also has very unique contract laws, which could set traps for attorneys who are not familiar with these types of laws.  Likewise, certain Arizona case law is very favorable to investors in arbitration cases, but non-licensed attorneys may not understand why.

An experienced investment fraud lawyer licensed in Arizona will understand how these statutes are interpreted by local courts and regulators — including the Arizona Corporation Commission’s Securities Division, which enforces Arizona’s securities laws.  Being licenced to practice law in the state of Arizona, we also understand how the Arizona Securities Act intersects with the Arizona Consumer Fraud Act (A.R.S. § 44-1521 et seq.) and how it applies to Arizona investors.

Qualified to Represent You in Both Arbitration and Court

Most investment fraud claims are resolved through FINRA arbitration, but many involve related court actions. Arizona investors may need to:

• Compel arbitration through the courts
• Challenge a motion to dismiss or compel
• Confirm or vacate a FINRA arbitration award once it’s issued
  
  
  Only an attorney licensed in Arizona can handle these proceedings in state court without the need to associate local counsel — giving you a seamless, cost-effective representation throughout the process.  Aaron Israels is admitted to practice before the Federal District of Arizona, in addition to being authorized to practice in state courts.

Experience with Arizona Investors and Financial Advisors

Arizona’s investor landscape includes many retirees, professionals, and small business owners — all of whom are common targets for aggressive or unscrupulous financial advisors. We’ve seen a wide range of misconduct involving alternative investments, structured products, REITs, annuities, and more.

We understand the types of cases and brokerage firms that commonly affect Arizona investors and have experience holding those firms accountable.

Local Office in Phoenix and Statewide Availability

We maintain a satellite office in Phoenix, Arizona.  While we live out of state, Aaron has family in Arizona and is always happy to travel to meet with clients who would like an in-person meeting.

Protecting Arizona Investors Since 2017

Aaron Israels has been licensed in the state of Arizona since 2017 and brings many years of experience in investment fraud, FINRA arbitration, and securities litigation. As a founding partner of Israels & Neuman, PLC, he is committed to helping Arizona investors recover their losses and hold financial advisors and firms accountable for misconduct.

If you’re looking for an Arizona investment fraud lawyer who can provide personalized, local representation, contact Aaron at Israels & Neuman, PLC at (480) 993-2396 for a free and confidential case review.

Our securities and investment fraud lawyers at Israels & Neuman, PLC have handled many different cases involving structured products and can quickly determine if you are eligible to bring an arbitration case to try to recoup your losses. 

We recently read a fantastic 5-part article series on autocallable structured products, written by Craig McCann and Mike Yan of SLCG.  Dr. McCann is an expert witness and has a deep level of understanding of complex investment products.

The fifth part of the original article can be found here, but we summarized it for you below.

This post is based on extensive research by Dr. Craig McCann of SLCG Economic Consulting and identifies the top 100 auto-callable notes with the largest principal losses—a combined $1.01 billion in investor losses, or 55.1% of their total face value.

Why Auto-Callable Notes Are Failing Investors

Auto-callable notes are marketed as high-yield investments that pay periodic interest, with the potential for early redemption (auto-call) if certain market conditions are met. However, these products often contain hidden risks:

• If the underlying asset never reaches the call threshold, investors are stuck holding the note until maturity.
• If the stock price drops significantly, investors can suffer massive principal losses.
• Worst-of-basket notes expose investors to the weakest performing stock in a group, making losses even more severe.

The Worst Auto-Callable Losses: A Breakdown by Issuer

Dr. McCann’s analysis reveals that five major issuers each had over $100 million in losses from these structured products:

• Goldman Sachs: $234 million in losses
• JP Morgan, UBS, Morgan Stanley, and Credit Suisse: Each suffered over $100 million in losses from their structured notes.

Interestingly, UBS, Credit Suisse, and Bank of Montreal—firms previously identified for inflating their estimated Day-1 values—experienced the highest percentage of investor losses, averaging 62.6% principal loss per note, compared to 53.4% for all other issuers.

Largest Single Loss: JP Morgan’s ViacomCBS Note

The single largest loss came from a JP Morgan auto-callable note linked to ViacomCBS (CUSIP: 46652Y752) issued on June 11, 2021:

• Face Value: $38.4 million
• Final Payout: Just $2.607 per $10 face value, a 73.93% loss.
• Why? ViacomCBS never hit its call price, and its final price at maturity was only 26.07% of its original value.

Full List of the Top 100 Largest Auto-Callable Losses

Below is a list of each of the worst-performing auto-callable notes, including issuer, filing date, underlying stock(s), and CUSIP numbers.

(Principal Loss, % Loss, Issuer, Filing Date, Underlying Linked CUSIP)

-$28,396,499 -73.93% JP Morgan 6/15/2021 PARA ‘46652Y752

-$24,140,943 -81.43% Goldman Sachs 6/22/2021 DOCU ‘36260Y575

-$22,221,819 -71.96% Barclays 12/1/2020 BABA ‘06747L793

-$21,537,488 -51.62% Goldman Sachs 11/30/2021 AFRM ‘36261U879

-$20,617,694 -62.70% Goldman Sachs 6/15/2021 BABA ‘36260Y443

-$19,844,255 -77.57% UBS 7/2/2021 PARA ‘90279B191

-$19,422,700 -81.54% Goldman Sachs 6/29/2021 DOCU ‘36260Y724

-$18,947,751 -67.35% HSBC 10/5/2021 AFRM ‘40439K151

-$16,053,330 -85.97% UBS 11/2/2021 RNG ‘90285B763

-$15,992,339 -79.02% UBS 7/20/2021 PYPL ‘90279B381

-$14,093,685 -37.60% HSBC 3/29/2021 ICLN ‘40438U697

-$13,270,650 -66.35% HSBC 11/19/2020 BABA, JD ‘40438CD73

-$13,215,232 -54.34% UBS 7/13/2021 RBLX ‘90279B357

-$12,918,713 -86.48% Goldman Sachs 10/26/2021 RNG ‘36261U507

-$12,911,046 -84.05% JP Morgan 11/1/2021 SQ ‘48132YFZ3

-$12,839,423 -85.46% Morgan Stanley 10/6/2020 ZM ‘61771D514

-$12,612,423 -63.06% Credit Suisse 1/29/2021 NIO ‘22550MPT0

-$11,823,669 -76.77% UBS 8/3/2021 PYPL, SQ ‘90279B555

-$11,769,914 -77.18% JP Morgan 3/17/2021 ICLN, PBW ‘48132TCL8

-$11,359,425 -68.55% JP Morgan 2/25/2021 ARKK ‘48132RC40

-$11,248,711 -47.55% Citigroup 11/1/2021 KBE, XBI, XLK ‘17329ULH2

-$11,093,302 -52.54% Credit Suisse 11/19/2019 BA ‘22550K624

-$11,048,618 -82.45% HSBC 8/24/2021 ZM ‘40439K425

-$11,022,527 -85.09% Credit Suisse 10/2/2020 ZM ‘22550X626

-$10,949,166 -82.19% JP Morgan 11/1/2021 TWLO ‘48132YGB5

-$10,694,301 -42.85% Credit Suisse 1/26/2021 KRE, XBI, XLK ‘22552X4W0

-$10,644,258 -85.15% Credit Suisse 11/30/2021 PTON ‘22553P6P9

-$10,435,578 -50.78% HSBC 1/30/2018 SX7E ‘40435J422

-$10,364,077 -70.43% Morgan Stanley 4/30/2021 PARA ‘61771VWX4

-$10,343,102 -31.70% Goldman Sachs 6/11/2021 SPY, XBI ‘36260Y468

-$9,935,676 -82.32% Morgan Stanley 10/19/2021 MRNA ‘61773G150

-$9,836,092 -80.32% B of A 4/20/2021 CHWY ‘09709UGK8

-$9,666,266 -42.85% Citigroup 1/26/2021 SMH, XBI, XLK ‘17328YGJ7

-$9,588,922 -72.33% Citigroup 11/1/2021 OKTA ‘17329UL82

-$9,580,844 -51.37% RBC 5/25/2021 WYNN ‘78014U129

-$9,358,229 -46.79% Barclays 10/14/2020 BABA ‘06741WLG3

-$9,321,135 -80.32% JP Morgan 4/20/2021 CHWY ‘48132TVJ2

-$9,131,504 -35.81% Goldman Sachs 4/19/2021 SPSIBI ‘40057FZT4

-$9,031,422 -72.71% Barclays 11/3/2020 BABA ‘06747K274

-$8,935,811 -27.89% BMO 11/1/2021 RTY ‘06368G2T3

-$8,723,852 -40.95% Morgan Stanley 11/1/2021 INDU, KRE, NDX ‘61773F7E7

-$8,689,960 -43.45% Citigroup 11/3/2021 TSLA ‘17329T450

-$8,531,140 -39.52% Morgan Stanley 4/27/2021 KRE, XBI, XLK ‘61771VUW8

-$8,521,133 -33.60% B of A 7/26/2021 KRE, XBI, XLK ‘09709UNL8

-$8,500,203 -68.55% Morgan Stanley 2/25/2021 ARKK ‘61771EM54

-$8,440,029 -44.49% B of A 3/2/2021 KRE, XBIXLK ‘09709UCX4

-$8,408,409 -89.03% Citigroup 7/28/2021 AAPL, ROKU ‘17328NYR3

-$8,391,110 -63.08% JP Morgan 11/1/2021 RBLX ‘48132YGA7

-$8,248,095 -60.61% JP Morgan 12/27/2021 ARKK, INDU, SPX ‘48132Y3D5

-$8,238,556 -40.95% Morgan Stanley 11/1/2021 KRE, NDX, SPX ‘61773F7F4

-$8,233,450 -32.19% Barclays 1/14/2020 C ‘06747E153

-$8,201,905 -74.27% RBC 8/31/2021 PARA ‘78016EG50

-$8,199,198 -57.97% Credit Suisse 11/5/2019 BA ‘22550K517

-$8,180,579 -16.36% RBC 12/22/2021 SPY ‘78013G3N3

-$8,126,049 -77.55% Morgan Stanley 8/10/2021 PYPL ‘61772Y640

-$7,923,612 -79.24% UBS 9/7/2018 XOP ‘90284W677

-$7,885,779 -46.66% Citigroup 7/27/2021 AAPL, AMZN ‘17328NSH2

-$7,832,256 -40.50% B of A 11/1/2021 DT ‘09709UTZ1

-$7,712,150 -72.56% RBC 6/17/2021 SQ ‘78016E4Y0

-$7,643,658 -83.66% RBC 7/20/2021 ZM ‘78016EHH3

-$7,611,727 -21.42% JP Morgan 6/29/2021 GM ‘46652Y653

-$7,562,388 -83.92% JP Morgan 10/29/2021 MRNA, ZG, ROKU ‘48132YJD8

-$7,561,370 -73.54% Goldman Sachs 10/22/2021 DOCU ‘36261U523

-$7,555,898 -76.17% JP Morgan 10/5/2021 DOCU ‘48132X313

-$7,470,000 -100.00% Credit Suisse 10/26/2021 FRCB, SBNY, USB ‘22551G432

-$7,293,124 -86.98% Credit Suisse 11/3/2020 ZM ‘22550X741

-$6,966,275 -69.66% Morgan Stanley 2/18/2021 PDD ‘61771VAE0

-$6,944,857 -45.28% HSBC 7/9/2021 AMZN, COST, TGT, WMT ‘40439JFN0

-$6,933,915 -78.35% Citigroup 9/30/2021 AMZN, TDOC ‘17328NXQ6

-$6,901,963 -71.57% UBS 12/2/2020 AMZN, BABA ‘90278R460

-$6,791,827 -64.49% Morgan Stanley 10/16/2019 BA ‘61770C434

-$6,686,637 -67.80% Credit Suisse 8/12/2021 Z ‘22550MVT3

-$6,665,922 -56.20% Goldman Sachs 6/22/2021 SHOP ‘36260Y567

-$6,536,787 -81.33% Goldman Sachs 11/15/2021 MRNA ‘36261U721

-$6,536,193 -70.66% CIBC 5/3/2021 ARKK ‘13605W2V2

-$6,487,286 -81.26% Morgan Stanley 10/5/2021 MRNA ‘61773E734

-$6,476,887 -84.20% Goldman Sachs 11/26/2021 MRNA ‘36261U861

-$6,434,644 -51.62% Citigroup 11/9/2021 TSLA ‘17329T740

Auto-Callable Notes That Haven’t Matured Yet

In addition to the 78 notes that have already matured, 22 more high-risk notes remain outstanding, with projected losses exceeding $230 million. Notable examples include:

-$14,837,360 -53.87% Barclays 7/18/2023 RIVN ‘06745MQK7

-$11,130,974 -46.85% Barclays 3/26/2024 EL ‘06745QBV0

-$9,034,456 -45.17% UBS 4/12/2024 EL ‘90307F255

-$8,584,177 -45.59% Citigroup 3/19/2024 AMD ‘17291LRC1

-$8,464,045 -33.86% HSBC 6/25/2021 SPY, XBI ‘40439K763

-$8,405,601 -53.47% Goldman Sachs 3/23/2021 ARKK ‘40057FSJ4

-$8,090,740 -32.37% HSBC 7/12/2021 SPY, XBI ‘40439K730

-$7,923,872 -79.24% Goldman Sachs 9/16/2021 MTCH, TWTR, CHWY ‘40057JKJ4

-$7,750,257 -57.05% Goldman Sachs 3/22/2022 AA ‘36264H180

-$7,633,727 -96.85% Credit Suisse 1/12/2021 AAPL, BYND, PYPL, SPLK ‘22552X2E2

-$6,577,667 -65.78% Credit Suisse 10/27/2021 META, LLY, OKTA ‘22551G465

-$6,577,147 -63.64% Goldman Sachs 2/17/2021 ARKK ‘40057FG57

-$11,283,925 -29.47% Goldman Sachs 7/16/2021 SPY, XBI ‘36261B301

-$9,506,827 -41.48% Goldman Sachs 2/6/2024 AMD ‘40057Y3Q4

-$9,286,780 -34.24% B of A 9/3/2021 SPY, XBI ‘09710E614

-$9,270,979 -37.64% UBS 3/22/2022 PYPL ‘90290V614

-$8,911,093 -44.90% Goldman Sachs 8/22/2023 RIVN ‘40057TUS1

-$7,842,774 -39.73% Goldman Sachs 2/13/2024 AMD ‘40057YB44

-$7,254,912 -49.87% Goldman Sachs 3/12/2024 AMD ‘40057YM26

-$7,153,440 -40.21% Goldman Sachs 2/21/2024 AMD ‘40057YD26

-$6,599,730 -41.55% Morgan Stanley 3/27/2024 AMD ‘61776K539

-$6,474,573 -29.31% Goldman Sachs 10/25/2022 OXY ‘36264U173

Final Thoughts: The Auto-Callable Trap

The findings in this report reinforce a troubling reality: auto-callable structured notes are often designed to benefit issuers at the expense of investors. Whether through inflated Day-1 values, hidden costs, or poorly structured call and payout mechanisms, these products have caused billions in losses—losses that many investors never saw coming.

What Investors Can Do

If you have suffered losses from an auto-callable structured note, you may have legal recourse. Israels & Neuman, PLC is committed to helping investors recover their losses from misleading or improperly structured investments.

📞 Contact us today at (720) 599-3505 for a free consultation on your case and potential recovery options.

1. Always Verify That You Are Dealing With a Licensed Professional

Before investing any money, check the individual’s credentials using FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure tool. These can reveal if someone is properly licensed and whether they’ve had complaints or disciplinary actions. Also, do a basic online search. Look for reviews, business locations, and anything else you can find. Be especially cautious if someone has a very limited online footprint.

2. Meet With Them in Person When Possible – and Get Everything in Writing

Fraud is more likely when interactions are limited to phone calls, emails, or messaging apps. An in-person meeting gives you a better sense of who you’re dealing with. Also, real financial firms require you to complete a large volume of paperwork to open an account. If you’re not signing multiple documents before sending funds, that’s a red flag.

3. Talk to Your Family About What You’re Doing

Sometimes, the best protection is simply a second opinion. Tell trusted friends or family members about any investment you’re considering—especially if it seems complicated or high-risk.

4. Avoid High-Pressure Sales Tactics and Artificial Deadlines

If someone tells you that you’ll “miss out” unless you invest right now, walk away. Real investment opportunities don’t vanish overnight.

5. Do Not Trust Anyone You Meet Through Social Media or WhatsApp

Legitimate financial professionals don’t pitch investments over social platforms. If someone contacts you out of the blue via WhatsApp, Instagram, or Facebook—it’s almost certainly a scam.

6. Make Sure Your Investments Are Held by a Reputable Financial Institution

Your money should be held by a known custodian like Charles Schwab or Fidelity—not by the person selling the investment. You should have independent, direct access to your account online. Also, be cautious of anyone who doesn’t have a legitimate business location or isn’t affiliated with a recognizable firm.

7. Be Cautious If You Don’t Understand the Investment

If the person pitching it says it’s “too complicated to explain,” that’s a red flag. Good advisors should be able to explain the basics in plain English.

8. Watch Out for Promises of High Returns with No Risk

Be skeptical of investments that sound too good to be true. Generally, no legitimate investment offers large, steady returns without any risk.

9. Insist on Regular Statements from a Third-Party Custodian

You should receive official statements directly from the financial institution holding your money—not spreadsheets or PDFs created by the advisor.

10. Don’t Invest When You’re Emotional or Distracted

Scammers target people who are going through grief, stress, or major life transitions. If you’re feeling vulnerable, take your time and talk things over with someone you trust.

11. Be Mindful of What You Share Online

Scammers often use social media to gather information. Avoid sharing details about your finances, recent inheritances, or emotional hardships online.

12. Monitor Your Investments and Ask Tough Questions

Insist on regular reports and keep an eye out for unauthorized or excessive trading. If something doesn’t feel right—and you’re getting vague answers—report it to your state’s Securities Division.

13. Watch Out for People Who Prey on Fear

Many fraudsters sell their schemes as a way to eliminate your financial worries. Fear (and greed) can cloud good judgment—stay grounded and ask questions.

14. Good Manners Don’t Equal Integrity

Con artists are often extremely polite and personable. They count on your good manners to keep you from cutting them off or challenging them. Trust your gut, not their charm.

15. Be Especially Cautious If You’re New to Investing

If you’re unfamiliar with financial terms or strategies, don’t be afraid to ask questions—lots of them. If the salesperson can’t explain the investment in everyday language, walk away.

16. NEVER Share Personal Information With Unverified Callers or Emails

If someone claims to be from a reputable financial institution and contacts you out of the blue, don’t give out your information. Instead, look up the institution’s real phone number and call them back directly to verify the contact. Better yet, call someone you know at the institution and tell them about the call.  Scammers often spoof phone numbers and caller ID to make themselves look legitimate—be very, very careful.

17. Be Very Careful With Cryptocurrency.

Cryptocurrency scams and fraud are everywhere these days.  We have seen everything from pump and dump schemes to outright theft.  Cryptocurrency investments are not appropriate for all people and need to be approached with caution.  If you have never invested in cryptocurrency, talk with a licensed financial advisor or broker about how to get into the crypto space through legitimate investments, such as ETFS, which are marketed and sold by large institutions.

Final Thought:

Investment fraud thrives on secrecy, confusion, and misplaced trust. Taking these simple steps can dramatically reduce your risk of becoming a victim of fraud. If something doesn’t feel right, trust your instincts—and don’t hesitate to contact a qualified investment fraud attorney.  The attorneys at Israels & Neuman always provide a free and confidential consultation and we represent clients in all 50 states. 

Feel Free to Call Us Today! (720) 599-3505

Or Visit Us at www.israelsneuman.com

Illinois investors who have suffered losses due to investment fraud or financial advisor misconduct need an attorney with the right mix of experience, credentials, and local insight. At Israels & Neuman, PLC, we represent clients across the country, but we have deep roots in Illinois — especially the Chicago area — which gives us a distinct advantage when advocating for investors in the state.

Both founding attorneys are licensed to practice law in Illinois: Dave Neuman since 2005 and Aaron Israels since 2009.  Dave attended law school in Illinois and worked in Illinois for several years at a Chicago based law firm, where he represented hundreds of investors in FINRA Arbitrations. We maintain a Chicago office and regularly represent investors throughout the state, including in Cook, DuPage, Kane, Lake, McHenry, and Will Counties.

1.     Understanding of the Illinois Securities Law and Investor Protections

Illinois maintains its own securities statutes under the Illinois Securities Law of 1953. This law includes specific provisions on fraud, omissions, and the sale of unregistered securities. In many cases, investors may have claims under both federal law and the Illinois Securities Law — but an experienced, locally licensed investment fraud lawyer will know how to navigate both systems and take advantage of all available remedies including potential claims under the Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/1 et seq.).

Understanding how Illinois regulators and courts interpret the law is critical in developing a strong legal strategy, whether your claim involves unsuitable investments, unauthorized trading, Ponzi schemes, or failure to supervise.

2.     Israels & Neuman, PLC is Authorized to Represent You in Both FINRA Arbitration As Well As in Illinois Courts

Most securities fraud cases are resolved through FINRA arbitration, not court. But in Illinois, just like elsewhere, arbitration frequently intersects with litigation. For example, it may be necessary to:

• File a petition in state court to compel arbitration
• File a petition in state court to compel arbitration
• Confirm or vacate a FINRA arbitration award once it’s over

Only a lawyer who is licensed in the state of Illinois can represent you in these court proceedings without needing to bring in additional and sometimes costly “local counsel.” That’s why it’s smart to hire an Illinois-licensed FINRA arbitration attorney who is already legally authorized to appear in both forums. 

Aaron Israels, the founding partner of Israels & Neuman, PLC, is a member of the federal trial bar in the Northern District of Illinois – many Illinois-licensed attorneys do not have that credential.  Attorney Dave Neuman is also licensed in the Northern and Central Districts of Illinois.

3.     Strategic Knowledge of the Illinois Legal Landscape

Illinois, and especially Chicago, is a highly competitive and complex legal market. The courts are busy, the opposing attorneys are experienced, and the judges expect clear, well-prepared legal arguments. Working with attorneys who regularly handle investment fraud claims in Illinois gives you a distinct edge.

Aaron and Dave have collectively handled multiple securities arbitration cases for thousands of clients and have appeared in both federal and state courts throughout Illinois. We understand how local judges rule, how arbitrators in the Chicago FINRA hearing pool operate, and how to present your case effectively. Our law firm has recovered millions of dollars for our clients.

4.     Local Presence Means Greater Accessibility

When you’re dealing with financial loss, personal service matters. Being able to meet your attorney in person, go over your account statements face to face, and have someone nearby to answer all of your questions can make a stressful process a little bit easier. We maintain an office in downtown Chicago and are available to meet with clients throughout the entire state of Illinois. 

Our legal team takes pride in providing responsive, one-on-one attention to every client we represent — and we’re always available to travel if you prefer to meet closer to home.

Trusted Experience in Illinois Investment Fraud Cases

At Israels & Neuman, PLC, we combine national experience with Illinois-specific knowledge. Dave Neuman has been licensed in Illinois since 2005, and Aaron Israels since 2009. We’ve represented investors in a wide variety of securities and investment fraud disputes — from traditional brokerage firm misconduct to complex cases involving alternative investments, REITs, structured notes, and more.

If you’re looking for an Illinois securities fraud lawyer who knows how to handle your case from start to finish, contact us today for a free and confidential consultation.

(312) 500-2021

Aaron:  aaron@israelsneuman.com

Dave:  dave@israelsneuman.com

1.     Michigan Law Requires Local Counsel for Arbitration and Court

Under Michigan Court Rule 8.126, an attorney who is not licensed in Michigan must affiliate with a Michigan-licensed attorney to participate in any legal proceeding within the state — and that includes both court actions and FINRA arbitration hearings held in Michigan. If you hire an out of state lawyer, they have to find a local lawyer to affiliate in order to handle your claim.

2.     Knowledge of the Michigan Uniform Securities Act

Michigan has its own securities laws, including the Michigan Uniform Securities Act of 2002 (MCL 451.2101 et seq.). A local investment fraud lawyer like Aaron Israels at Israels & Neuman, PLC will be familiar with how Michigan courts interpret these statutes, which can differ from federal law or the laws of other states. Whether your case involves unauthorized trading, unsuitable investments, Ponzi schemes, or failure to supervise, understanding the local application of the law is crucial.

3.     Court Experience If Your Case Moves Beyond Arbitration

Securities fraud matters typically proceed through arbitration, but they often intersect with the courts. For example, a judge may be asked to compel arbitration proceedings, stay an arbitration claim, or confirm or vacate an arbitration award. Hiring a Michigan FINRA arbitration attorney who is also licensed to practice law in court in the state of Michigan ensures that your representation is seamless and fully authorized from day one. 

Aaron Israels has worked in many different Circuit Courts in Michigan and is currently admitted to practice before both the eastern and western federal districts of Michigan.

4.     Personal Accessibility and Local Presence

Trust is essential in any legal relationship. Our Michigan licensed lawyer can meet with you face-to-face to answer questions, review documents, and guide you through your case. We have two convenient offices, located in Grand Rapids and Ann Arbor, but are happy to travel to meet with clients, from Traverse City to Grand Rapids, to the Lakeshore communities, and anywhere on the eastside, including in Oakland County, Detroit and Wayne and Macomb Counties. 

Experience You Can Trust

Aaron Israels has been a licensed Michigan attorney since 2007, representing investors across the state as well as nationwide in FINRA arbitration and securities fraud litigation. As a founding partner at Israels & Neuman, PLC, Aaron combines national experience with deep local roots.  Aaron currently lives in West Michigan, but he also spent over 10 years living on the east side of the state, including Washtenaw, Wayne and Oakland County.

If you’re looking for a Michigan-licensed FINRA arbitration attorney, we’ll fight to recover your losses and help you hold the responsible parties accountable. Contact us today at (616) 280-4303 or email us at aaron@israelsneuman.com

Top 3 Reasons to Hire a Seattle Based FINRA Arbitration Attorney for Your Case.

1.     Familiarity with Washington Securities Laws

Every state has its own securities statutes. In Washington, the Securities Act of Washington (RCW 21.20) governs investment fraud, and it contains specific provisions that may affect your rights and legal options. A local investment fraud lawyer will understand how Washington courts interpret and apply these laws — which can be different from federal rules or approaches used in other states.

2.     Court Access for Related Legal Proceedings

Although FINRA arbitration is the main forum for securities disputes, court involvement is common. Investors often need to compel arbitration or fight motions to compel, seek injunctions, or ask a judge to confirm or vacate an arbitration award. Hiring a Washington-licensed securities fraud lawyer ensures your attorney is authorized to handle both arbitration and court-related matters within the state.  If your lawyer isn’t licensed in Washington, they won’t be able to represent you in those court proceedings without special permission from the court.  Likewise, if collection proceedings are needed, those require court action as well.

3.     Convenient Access and Personalized Service

When dealing with something as serious as financial or investment loss, many clients prefer to meet their attorney in person. Our firm has offices in Seattle, but we have represented investors throughout the state, including Tacoma, Olympia, Bellevue, Spokane, Vancouver (WA), Bellingham, and many others. Dave is available to meet with clients throughout Washington. Working with a local attorney means you’ll have someone who can meet face-to-face, respond quickly, and understand the legal culture of your community.  Along these same lines is the time zone.  Dave is located in the Pacific time zone, and he can be reached more conveniently than an attorney in the Eastern time zone.

Representing Washington Investors Since 2014

Attorney Dave Neuman has been practicing law since 2005 but has been licensed in Washington since 2014 and has extensive experience representing investors across the state and the country. From high-stakes FINRA arbitrations to complex investment fraud litigation, Dave combines in-depth legal knowledge with a personal commitment to each client’s case.

If you’re looking for a trusted Washington securities fraud lawyer to guide you through the legal process, contact Israels & Neuman, PLC today at (206) 795-5798 for a free consultation or email Dave directly at dave@israelsneuman.com

• 1. Unexplained Losses That Don’t Match the Market

If your portfolio is consistently underperforming — especially when the market is doing well — your advisor may be taking inappropriate risks or failing to follow your investment objectives.

• 2. Excessive Trading (Churning)

Are there lots of trades in your account that you didn’t authorize or don’t understand? Some advisors generate high commissions for themselves by overtrading, which can eat away at your returns.

• 3. Lack of Communication

A good advisor should be responsive, explain changes, and answer your questions clearly. If yours is hard to reach or avoids giving straight answers, it may be time to take a closer look.

• 4. Failure to Receive Consistent Account Statements

Many fraud victims receive account statements only sporadically — or not at all. If you aren’t getting regular, detailed statements from a legitimate financial institution, that’s a major red flag.

• 5. High Fees You Weren’t Told About

Hidden fees and commissions can signal that your advisor is putting their profits ahead of your best interests. Always ask for a clear breakdown of costs.

• 6. Overconcentration in a Single Stock or Sector

Diversification is key to managing risk. If your portfolio is heavily invested in one company, product, or industry, that’s a potential red flag.

• 7. Pushing Complex or Unfamiliar Investments

Were you sold a product you don’t fully understand, like a REIT, structured note, or annuity? Advisors sometimes pitch these high-commission products without explaining the risks.

• 8. Unclear or Vague Explanations of Where Your Money Is Invested

If your advisor cannot clearly explain what your money is invested in and how it works, that’s a serious concern. Transparency is key — you have the right to know how your funds are being used.

• 9. You Feel Something Just Isn’t Right

Trust your instincts. If you’re uneasy, it’s worth reviewing your account with an experienced investment fraud attorney who can help spot potential misconduct.

Think You’ve Been the Victim of Investment Fraud?

We represent investors nationwide in claims against financial advisors and brokerage firms. If you suspect your money is being mismanaged, contact Israels & Neuman, PLC today for a free consultation at (720) 599-3505 or email us directly at aaron@israelsneuman.com

If you have lost money investing in autocallable structured notes or other types of structured products, please contact the securities and investment fraud law firm of Israels & Neuman today.  You may be able to recover some or all of your investment losses through securities arbitration. 

Our experienced securities arbitration and investment fraud lawyers have handled many different cases involving structured products and can quickly determine if you are eligible to bring an arbitration case to try to recoup your losses.  We offer a free consultation and we work on a contingency fee basis, meaning if we don’t recover money for you, you don’t pay us.

We recently read an excellent 5-part article series on auto callable structured products, written by Craig McCann and Mike Yan of SLCG.  Mr. McCann is an expert witness and has extensive knowledge related to complex financial products.

The third part of the original article can be found here, but we have summarized it for you below.

Summary

Auto-callable notes (ACNs) have become a popular yet risky investment product, frequently issued by major financial institutions such as UBS, Goldman Sachs, JP Morgan, Citigroup, and Morgan Stanley. In just the past four years, $122 billion worth of these structured products have been sold. However, their complexity often conceals severe risks.

In previous analyses, we examined the role of ACNs tied to Lucid Motors. Today, we highlight a particularly poorly timed issuance by Citigroup linked to Silicon Valley Bank (SVB)—an auto callable note that was already worthless before it even settled in customer accounts.

The SVB-Linked Auto-Callable Notes: A Disaster for Investors

Between August 2021 and March 9, 2023, five auto-callable notes were issued that were directly tied to SVB stock, including:

• Credit Suisse’s $725,000 Contingent Coupon Callable Yield Note
• Citigroup’s $593,000 Auto-Callable Securities, Due September 12, 2024
• RBC’s $887,000 Auto-Callable Contingent Coupon Barrier Note
• Citigroup’s $1,301,000 Auto-Callable Linked to Adobe, Intuit, and SVB
• HSBC’s $1,301,000 Auto-Callable Notes Linked to SVB

These products were issued with the expectation that SVB’s stock would remain stable or grow, thereby allowing for coupon payments and potential early redemption. However, this assumption proved disastrous.

A Perfect Storm: The March 2023 Collapse of SVB

Silicon Valley Bank’s stock steadily declined leading up to its collapse. The key price movements were:

• $581.73 – Initial issue price for the first ACN
• $542.74, $402.56, $310.77 – Subsequent issues at lower stock prices
• $267.83 – Closing price on March 8, 2023
• $106.04 – Closing price on March 9, 2023, a 60% single-day drop
• March 10, 2023 – SVB is shut down by regulators

Despite numerous public warnings about SVB’s impending collapse, Citigroup issued an auto-callable note on March 9, 2023—after the stock had already suffered catastrophic declines. This note was completely worthless before it was even settled into investor accounts on March 14, 2023.

Auto-Callable Notes: High-Risk and Poorly Understood

Auto-callable notes are often marketed as high-yield investments with contingent coupon payments. However, they come with severe risks:

1. Market Volatility Destroys Value
   • When the underlying stock declines significantly, coupon payments stop, and the note’s value collapses.
2. No Principal Protection
   • Unlike bonds, there is no guarantee of repayment. Investors may receive only a fraction—or nothing—of their initial investment.
3. Early Redemption Works Against Investors
   • If the stock performs well, the issuer redeems the note early, preventing the investor from benefiting from long-term gains.
4. Liquidity Issues
   • Investors cannot easily sell these notes, often facing steep losses in secondary markets.

The Devastating Investor Losses from SVB-Linked ACNs

Every auto-callable note linked to SVB suffered massive losses:

• Citigroup’s March 9, 2023 Issuance → Completely worthless before settlement
• Credit Suisse’s Note → Paid $103.50 in coupons but only $1.70 per $1,000 at maturity
• RBC’s Note → Paid $2.50 in one quarterly coupon per $100 face value
• Citigroup’s Worst-Of Note (Adobe, Intuit, SVB) → Paid $19 in 20 monthly coupons per $100 face value
• HSBC’s Note → Paid $11.15 in 4 quarterly coupons per $100 face value

Citigroup’s Reckless Decision: A Lesson for Investors

The decision to issue a new SVB-linked auto-callable note on the eve of the bank’s collapse raises serious questions about Citigroup’s risk management and investor protection measures.

This case underscores why investors should be extremely cautious with structured products like auto-callables. The SVB-linked ACNs illustrate how these notes can lead to near-total losses, even when issued by major financial institutions.

Dr. Craig McCann and SLCG Economic Consulting have repeatedly warned about the dangers of structured financial products like auto-callable notes. The SVB collapse shows that these instruments are designed to benefit issuers, not investors.

For investors seeking safer alternatives, it may be prudent to look into:

• Diversified ETFs for long-term growth
• Government or high-grade corporate bonds for stability
• Traditional dividend-paying stocks for passive income

If you lost money on auto-callable notes or other structured products, you may have legal recourse to recover money. Contact Israels & Neuman, PLC today at (720) 599-3505 for a free and confidential consultation or email Aaron Israels directly at aaron@israelsneuman.com

If you have lost money investing in auto callable structured notes or other types of structured products, please call our office today.  You may be able to recover some or all of your investment losses through securities arbitration. Israels & Neuman, PLC is a securities and investment fraud law firm that represents investors who have lost money investing in structured products.  We always offer free consultations and work on a contingency fee basis, meaning you don’t pay us unless we successfully recover money for you.

We recently read an excellent 5-part article series on autocallable structured products, written by Craig McCann and Mike Yan of SLCG.  Mr. McCann is an expert witness and has a deep level of understanding of complex investment products.

The second part of the original article can be found here, but we summarized it for you below.

Summary:

Auto-callable notes (ACNs) have become an increasingly popular structured product, offering high potential yields while embedding complex risk factors. While they promise attractive returns, they also expose investors to significant risks, especially when linked to volatile stocks. A recent analysis of five autocallable notes tied to Lucid Group Inc. (and in some cases Uber, Chewy, Square, PetMed Express, and DocuSign) demonstrates just how dangerous these products can be for investors.

How Auto-Callable Notes Work

Auto-callable notes are structured products with three key features:

1. Contingent Coupons: Investors receive periodic interest payments only if the underlying stock remains above a pre-set coupon barrier.
2. Auto Call Feature: If the stock price rises above a certain level at designated observation dates, the issuer redeems the note early, returning the principal but halting future high-yield payments.
3. Knock-In Protection: If the stock price falls below a critical threshold, investors suffer significant losses, often receiving a fraction of their initial investment.

McCann Case Study: Five Auto-Callable Notes Linked to Lucid Group Inc.

Five ACNs issued by Credit Suisse and Citigroup from late 2021 to early 2022 illustrate the risks involved. The results of these investments have been overwhelmingly negative:

• Only one note was called early after paying just three coupons, limiting investor gains.
• The other four notes failed to auto-call and are projected to pay less than $10 per $100 face value at maturity due to Lucid’s stock decline.

Example 1: Credit Suisse Note (Oct 2021 – Lucid & Uber)

• Paid only 3 coupons before being called.
• Investors received their principal back but missed out on potential continued high-yield payments.

Example 2: Credit Suisse Note (Nov 2021 – Lucid Only)

• Failed to auto-call as Lucid’s stock declined.
• No coupons paid after April 2022.
• Investors will likely receive about $80 per $1,000 face value at maturity.

Example 3: Credit Suisse Note (Nov 2021 – Lucid, Chewy, Square, PetMed)

• Required all four stocks to be above their thresholds.
• Only 2 coupons paid, then no further payments.
• Expected payout: Below 10% of face value.

Example 4: Citigroup Note (Jan 2022 – Lucid Only)

• Never paid a single coupon due to Lucid’s continued price decline.
• Expected payout: Less than $10 per $100 face value.

Example 5: Citigroup Note (Jan 2022 – Lucid & DocuSign)

• No coupons ever paid.
• Expected payout at maturity: Under 10% of face value.

Comparing Auto Callable Notes to Traditional Investments

Autocallable notes are often misrepresented as safe, high-yield alternatives, but when compared to traditional investments, their risks become evident:

Key Risks of Auto-Callable Notes

1. Early Redemption Caps Gains
   • If the underlying stock performs well, the issuer redeems the note early, limiting the investor’s profit potential.
2. Knock-In Risk – Potential for Huge Losses
   • If the stock falls below the knock-in level (often 50% of initial value), investors lose a large portion of their principal.
3. Limited Liquidity
   • Investors cannot easily sell these notes before maturity without incurring significant losses.
4. Hidden Costs & Conflicts of Interest
   • Many ACNs are issued at below face value (e.g., Citigroup and Credit Suisse valued the Lucid-linked notes at less than $970 per $1,000 at issuance).
   • Brokers receive commissions (3%-3.75%) for selling these products, creating a conflict of interest.
5. No Dividend Benefits
   • Unlike direct stock ownership, investors do not receive dividends from the underlying assets.
6. Issuer Credit Risk
   • If the issuing bank collapses, investors could lose everything, even if the underlying stock recovers.

Conclusion: Are Auto-Callable Notes Worth the Risk?

The recent performance of Lucid-linked auto callable notes highlights their inherent dangers. Investors were left with massive losses due to falling stock prices, while issuers and brokers profited through early calls and hidden fees.

For most investors, traditional stocks, ETFs, and bonds provide far better alternatives with greater liquidity, transparency, and long-term growth potential. Before investing in structured products like ACNs, investors should fully understand their downside risks and consider whether the potential rewards justify the lack of control and liquidity.

If you lost money investing in structured products, please call Israels & Neuman PLC today for a free consultation at (720) 599-3505.

If you have lost money investing in autocallable structured notes or other types of structured products, please call our office today.  You may be able to recover some or all of your investment losses through securities arbitration. 

The securities and investment fraud lawyers at Israels & Neuman PLC have handled many cases involving structured products and can quickly determine if you are eligible to bring an arbitration case to try to recoup your losses.  Our consultations are always free and we work on a contingency fee basis, meaning you don’t pay us unless we successfully recover money for you.

We recently read an excellent 5-part article series on autocallable structured products, written by Craig McCann and Mike Yan of SLCG.  Mr. McCann is an expert witness.

The first part of the original article can be found here, but we summarized it for you below.

Summary:

Autocallable structured products have seen a dramatic rise in issuance over the past decade, but they come with significant risks that many investors do not fully understand.

Understanding Autocallables

Autocallable structured products are complex financial instruments that offer high yields through periodic coupon payments. However, their structure includes embedded short put options that expose investors to substantial risk.

At maturity, an autocallable note will return its face value only if the underlying stock price remains above a set threshold (often referred to as the “knock-in level”). If the stock price falls below this level, the investor will receive a payout based on the stock’s lower value—often resulting in significant losses.

These products are often marketed as providing attractive returns, but the reality is that they can leave investors with devalued assets instead of their initial investment.

The Growth of Autocallables: A Surge in Issuance

McCann and Yan’s article, referenced above, documents the explosion in autocallable note issuance over the past ten years. Their data shows:

• 2007-2013: 889 issuances, averaging $3.1 billion per year.
• 2014-2018: 4,809 issuances, averaging $11.6 billion per year.
• 2019-2023: 11,122 issuances, averaging $27.9 billion per year.

Over $92.5 billion worth of autocallables have been issued in just the last three years alone. This rapid increase reflects both their popularity with financial institutions and the hidden risks many investors face.

Why Are Autocallables So Risky?

Several features make autocallables particularly dangerous for retail investors:

1. High Coupon Payments Are Misleading
   While autocallables pay attractive yields, these payments are not guaranteed. Some notes require the underlying stock to stay above a certain level for the coupon to be paid. If the stock price declines, investors may receive little to no income.
2. Automatic Call Feature Favors Issuers
   If the stock price remains stable or rises, issuers can call the note early, returning the investor’s principal—but without any further upside. This structure benefits the issuer while capping potential gains for the investor.
3. “Worst-of-Basket” Notes
   Some autocallables track multiple stocks, and investors receive payouts based on the worst-performing stock in the basket. This further increases the likelihood of losses.
4. Limited Transparency and Hidden Risks
   Brokerage firms market these products as safe, often downplaying the risks. However, as McCann and Yan point out, autocallables are simply a more complex version of reverse convertibles—structured products that suffered massive losses in 2008-2009.

Real-World Examples: Autocallables Gone Wrong

McCann and Yan highlight specific examples of autocallables linked to Lucid Group (LCID) stock, showing how these products can quickly become worthless:

• One note linked to Lucid and Uber was called early, allowing investors to exit without loss.
• However, four other Lucid-linked notes failed to pay any coupons, as Lucid’s stock price dropped from $40 to less than $3.
• Investors in these notes are now likely to receive less than $10 per $100 face value at maturity—an enormous loss.

What Investors Should Do

If you have been sold an autocallable structured product and experienced losses, you may have legal options. These products are often marketed to potential investors without fully explaining their risks, potentially leading to misrepresentation or unsuitable sales practices by brokers.

At Israels & Neuman, PLC, we specialize in representing investors who have been harmed by unsuitable investments and misrepresentations. If you or someone you know has suffered losses from autocallables or other structured products, contact us today at (616) 280-4303 for a free consultation.

The Northstar Healthcare Income REIT has suspended distributions in 2019. Recently, investors have received tender offers of $1.31 per share, which would represent substantial losses from the original purchase price. If your financial advisor recommended an investment to you in Northstar, which was unsuitable, the advisor and their brokerage firm may be liable for losses.

Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Phoenix, Arizona; Seattle, Washington; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states. Our attorneys have recovered millions of dollars for investors against many brokerage firms in the past.

If you lost money with Northstar Healthcare Income REIT, Contact the Law Firm of ISRAELS & NEUMAN at (720) 599-3505 or (206) 795-5798 for a FREE EVALUATION of your case and money recovery options.

Investment Fraud Attorney, Aaron Israels appears on Tom Martino’s Radio show to discuss Bitcoin Fraud

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Attorney Aaron Israels appeared as a special guest on consumer advocate, Tom Martino’s radio show this week to discuss problems associated with Bitcoin fraud.

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Tom Martino is a consumer advocate and talk radio host. He is also known as “The Troubleshooter”. His nationally syndicated show, “The Troubleshooter Show” airs on KHOW and is based in Denver, Colorado.

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To contact Attorney Aaron Israels, visit www.israelsneuman.com or call us at (720) 599-3505.

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CLICK HERE TO LISTEN TO THE SHOW!

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Attorney David Neuman of the Law Firm of Israels & Neuman, PLC was recently listed as one of the attorneys who has received an AV Preeminent Peer Review Rating from Martindale-Hubbell. The list of the attorneys who received this rating can be found here: https://www.martindale-avvo.com/blog/new-av-rated-attorneys-9-19/. This rating is awarded to lawyers with the highest ethical standards and professional ability, according to Martindale-Hubbell.

Israels & Neuman is a securities arbitration and investment fraud law firm that represents investors who have been harmed by their financial advisor, stockbroker, or securities brokerage firm. Our attorneys have recovered millions of dollars for our clients who have lost money at the hands of their stockbroker, investment adviser, or financial advisor.

CONTACT ATTORNEY DAVID NEUMAN directly at (206) 795-5798 for more information or for a Free & Confidential case review.