Were you the victim of Citigroup Global Markets, Inc. broker Jorge Menendez (CRD# 5138358) related to auto-callable structured notes investment losses? He has been registered with Citigroup Global Markets, Inc. in Miami, Florida, since 2013.
Auto-callable structured notes are market-linked investments that offer a coupon to retail investors during a 24-month period, from the date of sale through maturity. They are speculative in nature and only suitable for investors willing to take on significant risk to their investment portfolio.
According to public records, a former client filed a FINRA arbitration claim against Citigroup Global Markets, Inc. and broker Jorge Menendez alleging that the auto-callable notes recommended by the broker were not tied to the value of the underlying stocks, which were in the technology and financial sectors, among others.
Regrettably for the investors, the technology and financial sectors faced significant growth post-COVID-19 but then declined substantially into 2022. This was also the case with auto-callable notes, which ceased making income payments. In 2023, when the auto-callable notes matured and were called, investors were forced to purchase shares of the underlying stocks at decreased prices.
Many brokers did not inform their clients this was a potential outcome, as they presented the investments as safe and secure investments that were alternatives. In reality, auto-callable notes are actually speculative, sophisticated investments that come at a high cost.
Stocks included:
- Amazon
- Apple
- Bank of America
- Block, Inc.
- Disney
- JP Morgan
- Morgan Stanley
Jorge Menendez Customer Complaints
He has been the subject of one customer complaint, according to his CRD report:
June 2014. “Clients allege negligent misrepresenatations and omissions but the representative and that the product was not a suitable investment.” The case was settled for $49,500.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Citigroup Global Markets, Inc. may be liable for investment or other losses suffered by Jorge Menendez’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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