Shane Appelbaum (CRD#: 4772668), a registered representative with Herbert J. Sims & Co., Inc. (CRD#: 3420) in Boca Raton, Florida, is currently involved in a customer dispute over high-yield certificates of deposit (CD), according to his BrokerCheck record accessed on May 7, 2020. What are high-yield CDs? Why is Shane Appelbaum’s alleged recommendation of high-yield CDs problematic? Read on to find out more. 
Shane Appelbaum
On February 20, 2020, a customer alleged that Shane Appelbaum recommended two CDs that were unsuitable. What were the investments at issue? One investment was a $75,000 CD purchased in October 2014 with a maturity date of 2030. Another was a $240,000 Citibank CD purchased in January 2014 with a maturity date of 2034. They were purchased for a partnership which is beneficially owned by an elderly couple. The client is seeking $86,864.90 in damages. The dispute is pending. According to Shane Appelbaum’s Broker Comment, a longtime client invested in two “FDIC insured” CDs and the client’s daughter filed a complaint, which Shane Appelbaum calls “a misunderstanding.”
While Shane Appelbaum makes it a point to mention that these CDs are “FDIC insured,” that doesn’t mean that they are suitable investments for all investors. The CDs that Shane Appelbaum recommended are different from a typical CD that you could open at a bank or credit union. With long maturity dates, so-called “high-yield CDs” are investment products that are not suitable for all investors, particularly elderly investors who have a shorter time horizon for their investments than younger investors. 
In Fitapelli Kurta partner Jonathan Kurta’s blog post on high-yield CDs, he warns that high-yield CDs (also known as brokered CDs) typically have longer maturity dates than traditional CDs. If you decide to withdraw your money early, you may pay a hefty penalty, or you may not be able to withdraw your money at all. Your money could be tied up for 20 years or more, which is what happened to the elderly couple in the dispute with Shane Appelbaum. 
Furthermore, Shane Alexander’s recent dispute over high-yield CDs is not the only customer dispute on his BrokerCheck record. On June 12, 2018, a client alleged that he made unsuitable investment recommendations, engaged in negligence, engaged in fraud, and made misrepresentations. The matter ultimately settled. 
Shane Appelbaum has spent his 16-year career in the securities industry at one firm, Herbert J. Sims & Co., Inc. (CRD#: 3420). He is licensed to sell securities in Alabama, Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming
If Shane Appelbaum was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn about your options for recovery. Call (877) 238-4175 or email info@fkesq.com for your free case consultation with a securities attorney.