Category Archives: Variable Universal LIfe (VUL)

Marcos Yanez-Former LPL Financial Broker-Named in Customer Dispute Over Insurance and Loan-Dallas, TX

April 2017-Dallas, Texas

The FINRA records of  Marcos Yanez ,  a   former stockbroker with LPL Financial who is currently not registered with any brokerage firm disclose a pending customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In currently pending FINRA case #17-0528 a customer of LPL Financial and Edward Jones alleges damages of $200,000 for misrepresentations in the sale of a variable life insurance policy. In Addition the customer alleges that Yanez convinced him to take out a margin loan in order to loan the money to Yanez.

Yanez was employed by LPL Finanical from 12/2011-3/2016. Prior to that he was with Edward Jones 7/2007-1/2012. Yanez discloses business relationships with STAIB Wealth Management and Silver Sail Wealth Advisors.

If you have questions about an account handled by Marcos Yanez, call to learn about your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Christian J. Stoltz-Centaurus FInancial Broker-Discloses Customer Disputes

August 2016- Forty Fort, PA

The FINRA records of  Christian J. Stoltz,  a  stock broker who is currently employed by Centaurus Financial  disclose  a currently pending customer dispute and a prior customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In  the currently pending dispute , a customer of Centaurus Financial  alleges damages of $200,000 and alleges that they were sold an annuity with a longer term than what they desired.

In the prior dispute, FINRA Case#13-03122, a customer of Stoltz’s prior employer, Lincoln Financial Securities, alleged damages of $400,000, alleging that Stoltz never adequately explained the risks and costs associated with a variable life insurance policy and that the policy was unsuitable and that material misrepresentations were made to induce its purchase. That case was settled in 2014 for $196,000, with Stoltz contributing $100,000 to the settlement.

Stoltz has been registered with Centaurus Financial since 1/2007. 

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Terry Joe Bagwell Investigation Update-Pruco Securities-Birmingham, Alabama

April 6, 2016  – Birmingham, Alabama

FINRA Sanction

In February 2015, Terry Joe Bagwell   entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he was the designated supervisor of a registered representative who sold approximately $8.4 million in unapproved investments that were part of an ongoing Ponzi scheme. In addition, FINRA alleged that Bagwell personally participated in some of the unapproved private transactions.

Bagwell has been permanently  barred from engaging in certain activities.

Alabama Securities Commission Investigation

In November 2015 the Alabama Securities Commission initiated an investigation after receiving reports from Alabama residents who had purchased variable life insurance policies through MetLife/Bagwell who transferred the policies to Pruco and then, upon Bagwell’s recommendation, sold the Pruco policies and invested in a purported “hedge fund”. SC 2015-0023

Customer Disputes

Bagwell has been named in 9 customer disputes that have been resolved. Settlement amounts were as high as $1 million. There are currently 3 cases pending against Bagwell alleging fraud and the sale of unregistered securities.

Bagwell who is not currently registered. He was registered with Pruco Securities from 10/2011-3/2015 and prior to that, was registered with MetLife Securities from 4.2002-10/2011.

If you have losses in an account handled by Terry Joe Bagwell, contact us to learn how you may be able to recover damages from his former employer.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Royal Alliance Ordered to Pay $870K Over Variable Universal Life (VUL) Policy

January  9, 2015- Los Angeles, California

A FINRA arbitration panel in Los Angeles, CA , ordered Royal Alliance Associates  to pay a customer $870,000 in compensatory damages and over $14,000 in costs.  The customer alleged that he suffered damages as a result of the alleged recommendation by Royal Alliance that he surrender his Variable Universal Life Policy (VUL) issued by Provident Mutual . Estate of Michael William Lenvin v Royal Alliance Associates, Inc.  , FINRA Case # 14-000982.

The three person panel was comprised of two public and one non-public arbitrator. This was a split decision with the non-public arbitrator dissenting and finding no liability.

If you have questions about losses in your brokerage account, call to speak with an experienced securities attorney.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Royal Alliance Associates Hit with Big Arbitration Award Over Annuity Investment

January 9,2015- Los Angeles, CA

An arbitration panel of the Financial Industry Regulatory Authority (FINRA) ordered Royal Alliance Associates to pay an estate $870,000 following a five day arbitration in Los Angeles.

The estate brought a claim for breach of fiduciary duty, fraud and other claims relating to the alleged recommendation made by the Royal Alliance that the now deceased customer surrender his variable universal life policy (VUL) issued by Provident Mutual. Estate of Michael William Lenvin v Royal Alliance Associates, FINRA Case #14-00982.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

NY Life Broker David Herlicka Suspended/Fined by FINRA-Unsuitable Life Insurance Sales

UPDATE April 2017The FINRA records of David A. Herlicka disclose a final regulator event, 23 prior Final Customer Disputes and a termination from employment. Of the 23 customer disputes, 19 were complaints involving life insurance products and resulted in cash settlements which ranged from several thousand dollars to as high as $138,052.

ORIGINAL POST September 2014-

To resolve an action brought by the Financial Industry Regulatory Authority (FINRA) that he made unsuitable recommendations for the purchase of variable life insurance (VUL) , former NYLife Securities broker David A. Herlicka, of Bedford, New Hampshire, was suspended,  for 18 months beginning 6/2/2014 and  fined over $97,000, which includes disgorgement of commissions received of $77,000.

In the filing, FINRA alleges that Herlicka:

  • made recommendations to customers were unsuitable based on their financial situation and needs
  • made false entries on variable universal life insurance applications
  • made inaccurate statements and failed to make disclosures to customers regarding the risks of withdrawing funds, the risk of policy lapse and the existence of surrender charges
  • purchased a $1.5 million VUL policy for a customer without the customer’s authority

According to FINRA records there are numerous customer complaints against Herlicka. To access the FINRA BrokerCheck website, see this.

Variable Universal Life policies are complex and have their pitfalls. You should make certain that you fully understand the risks associated with this type of product and that you can afford the premium contributions required in the future.

If you were sold a variable universal life policy and feel that it was misrepresented to you or that it is not suitable for you given your financial situation and needs, call to discuss how you may be able to recover damages or have the transaction reversed.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870