As a seasoned financial analyst and legal expert, I have carefully reviewed the allegations against Eric Felsenfeld, a broker registered with Ameriprise Financial. The seriousness of these disputes cannot be overstated, as they strike at the heart of the trust investors place in their financial advisors.
Between 2024 and 2025, three parties of investors filed disputes alleging that Mr. Felsenfeld misrepresented investments in GWG Holdings. One claim even asserts that he represented the company as “no risk.” These pending disputes seek over $140,000 in alleged damages. Such conduct, if proven, represents a clear breach of the fiduciary duty owed by brokers to their clients.
A few key points stand out:
- Misrepresentation of investment risk is a serious violation of industry rules and regulations.
- Portraying any investment as “no risk” is misleading, as all investments carry some degree of risk.
- The substantial sum sought in damages underscores the significant financial harm investors may have suffered.
A Checkered History
Troublingly, this is not the first time Mr. Felsenfeld has faced investor complaints. Between 2021 and 2023, two other parties lodged disputes alleging breach of contract, negligence, misrepresentation, breach of fiduciary duty, and unsuitable recommendations. These claims, stemming from investments in REITs, BDCs, and other products, were settled by his former firm for over $50,000.
A review of Eric Felsenfeld’s FINRA BrokerCheck report paints a concerning picture:
- Multiple investor disputes over several years suggest a pattern of misconduct.
- Allegations span a range of issues, from misrepresentation to unsuitable recommendations.
- Previous disputes resulting in settlements indicate the credibility of the complaints.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett
According to a Bloomberg article, older Americans lose an estimated $140 billion a year to financial fraud, highlighting the prevalence of investment misconduct and the importance of holding bad actors accountable.
GWG Holdings Bankruptcy and Investor Recourse
The bankruptcy of GWG Holdings in April 2022, issuer of the risky GWG L Bonds, compounded investor woes. The company faced SEC scrutiny since 2020 for potential illegal conduct and allegedly funneled investor funds to principals’ personal ventures – facts concealed from investors.
However, investors who incurred losses on GWG products may have avenues for recovery:
- Filing FINRA arbitration claims against the firms that marketed the investments
- Participating in any distributions through GWG’s bankruptcy proceedings
A staggering 95% of financial advisors have never had a single complaint or regulatory action brought against them. Mr. Felsenfeld’s history places him in an ignominious minority.
Protecting Investors, Seeking Justice
As an advocate for investor rights, I believe it is crucial to thoroughly investigate the conduct of financial advisors like Eric Felsenfeld. Investors place immense trust in these professionals to steward their hard-earned savings. When that trust is violated, the consequences can be devastating.
If you have suffered financial losses due to products or strategies recommended by Eric Felsenfeld or any other Ameriprise broker, I urge you to discuss your legal options with an experienced investment fraud attorney. With millions recovered for wronged investors, the dedicated team at Haselkorn & Thibaut stands ready to pursue justice on your behalf.
Remember, your time to file an arbitration claim is limited. Call 800-767-8040 today for a free, no-obligation consultation. Together, we can hold bad actors accountable and protect the integrity of our financial markets.
