Couple Is Alleging Unsuitability and Breach of Fiduciary Duty in Their FINRA Lawsuit Against The Broker-Dealer
Shepherd Smith Edwards and Kantas ROCMuni Fraud Recovery Attorneys (investorlawyers.com) are representing two more Claimants from Paducah, Kentucky, who suffered serious portfolio losses after Stifel, Nicolaus & Co. broker Adam Chustz allegedly unsuitably recommended the Easterly ROCMuni High Income Fund. Now, the couple is suing the broker-dealer for up to $500K in damages.
From the start, these investors made it very clear that their money needed to be kept safe and liquid. While initially their funds were placed in a “smart rate” account that was supposed to guarantee liquidity and security, in addition to growth, Stifel would later unsuitably recommend the Easterly ROCMuni High Income Fund, which it allegedly misrepresented as a low-risk, municipal bond investment.
If only the broker-dealer had conducted the necessary due diligence, it would have seen that calling the Easterly ROCMuni Fund a “municipal” fund was misleading. The reality is that the Easterly Fund is a junk bond fund that is mostly invested in debt securities, a lot of them with junk ratings.
Why Did Investors Lose Money in The Easterly Fund?
On a downward spiral since October 2024—the Easterly ROCMuni Income Fund’s assets then were $300M and its trading price roughly at $7.35—this junk bond fund failed spectacularly in June 2025 in a fire sale that saw its price go down to around $3/share. It now has under $25M in assets.
While Stifel broker Adam Chustz, on the day the Easterly Fund collapsed, made the unilateral decision to get these investors out, this did not keep them from suffering a 30% loss in the Fund that day and a 40% loss overall. This financial advisor then used the proceeds from the liquidation to purchase a “high yield” municipal bond sponsored by Invesco.
Chustz did not notify these two Easterly Fund investors about what happened until they approached him after noticing the liquidation when they checked their accounts. In their FINRA lawsuit, these Claimants are alleging negligence, gross negligence, unsuitability, breach of contract, Regulation Best Interest violations, breach of fiduciary duty, unjust enrichment, failure to supervise, misrepresentations and omissions, and more.
Did Stifel Broker Adam Chustz Unsuitably Recommend The Easterly ROCMuni Fund To You?
It has come to our broker-dealer negligence law firm’s attention that Chustz allegedly involved more than 100 of his Clients in the Easterly Fund and, subsequently, made the unilateral decision to remove all of them when it collapsed. As a result, many of the investors sustained serious losses in this speculative, high-risk fund. These are losses that we strongly believed could have been avoided and were completely unjustifiable.
Shepherd Smith Edwards and Kantas is representing many of the investors who worked with Stifel and its broker, Adam Chustz. Quite a number of these claimants are from Paducah, KY where Chustz is located. Their losses are in the six- and seven-figures.
Adam Chustz’s BrokerCheck CRD notes at least four pending customer disputes.
We are also representing other Easterly Fund investors in other US states against Stifel, other broker-dealers, and other financial advisors.
If we decide to work together, you will become part of our unit of Easterly ROCMuni Fund recovery lawsuits and will be represented by everyone at our securities firm. Our trusted bond fund fraud attorneys are known for the experienced securities representation we offer to each Client. Over the decades, we have helped thousands of investors to collectively recoup many millions of dollars.
Contact Our Easterly ROCMuni Fraud Recovery Attorneys Today:
Call (800) 259-9010 or fill out this online form. In Kentucky, you can also reach us at (866) 931-7628.