Sanford C. Bernstein & Co. & AllianceBernstein LP Broker Jordan Forney Options Advantage Strategy Losses

AllianceBernstein LP

Erez Law is currently investigating Sanford C. Bernstein & Co. & AllianceBernstein LP broker Jordan Forney (CRD# 6156849), who is accused of promoting the firm’s Options Advantage Strategy, which caused substantial investment losses. He has been registered with Sanford C. Bernstein & Co., LLC in Washington, D.C., since 2013 and with AllianceBernstein L.P. in Washington, D.C., since 2016.

Public records indicate that the broker is an unnamed respondent in a recent FINRA arbitration claim alleging the broker recommended a couple invest in the Sanford C. Bernstein & Co. & AllianceBernstein LP Options Advantage Strategy, resulting in about $500,000 in losses. It is alleged that the firm presented the Options Advantage Strategy as a tool to earn 1-2% annual returns on assets in a low-risk, low-volatility, cash-free manner that utilized margin already with the firm rather than necessitating the investor to have to deposit additional monies. Additionally, it is reported that the firm utilized speculation and discretion of markets through the sale of S&P 500 call-and-put options; these were risky bets on market index movements, utilizing margin leverage. Bernstein later conceded that this strategy was inappropriate for volatile market conditions. As a result of this strategy, investors across the country suffered significant investment losses. 

It is further alleged that between 2018 and 2022, the firm misrepresented and omitted critical information when marketing its Options Advantage Strategy to its clients. Brokers allegedly received higher commissions, while their customers suffered staggering losses. 

In October 2022, after the firm sent a letter to investors stating that the strategy was not appropriate for volatile markets, the firm discontinued the Options Advantage Strategy. 

Jordan Forney Customer Complaints

He has been the subject of one customer complaint in 2023, according to his CRD report:

February 2023. “The Customer alleged unsuitable investment recommendations.” The customer is seeking $489,703.26 in damages; the case is currently pending. 

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, Sanford C. Bernstein & Co. & AllianceBernstein LP may be liable for investment or other losses suffered by Jordan Forney’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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Author: Jeffrey Erez

The founder of Erez Law, Jeffrey Erez, focuses exclusively on securities arbitration and litigation. Mr. Erez passionately believes in representing aggrieved investors and obtaining justice for his clients through litigation.