Tag Archives: annuity churning

Houston Based Valic Financial Advisors Fined $1.75M by Securities Regulator

November 2016-Houston, Texas

The Financial Industry Regulatory Authority (FINRA) fined Valic Financial Advisors  (VFA)$1.75 million for conflicts of interest related to the way it compensates brokers selling annuities.

FINRA found that Valic failed to have a reasonable system to address and review the conflict of interest created by its compensation policy.

According to FINRA,  “From October 2011 through October 2014, VFA created a conflict of interest by providing registered representatives a financial incentive to recommend that customers move their funds from Valic variable annuities to the firm’s fee-based platform or into a Valic fixed index annuity,”

“VFA further incentivized the conflict by prohibiting its registered representatives from receiving compensation when moving customer funds from a Valic VA to non-Valic VAs, mutual funds or other non-Valic products.”

Valic Financial Advisors is headquartered in Houston, TX, and has about 1,700 registered individuals located in 182 branch offices nationwide.  Valic is owned through subsidiaries of American International Group (AIG) , the giant insurer.

If you have questions about losses in an account at Valic Financial Advisors, contact us for a no charge consultation to discuss 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

Michael B. Inderlied-Former Wilbanks Securities Broker-Discloses Customer Disputes & Terminations

August  2016-Frisco, Texas

The FINRA records of Michael B. Inderlied ,  a  stock broker who is currently not licensed and who was last employed by Adirondack Trading Group   disclose  a prior regulatory event, 2 prior customer disputes and 2 terminations from employment.

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 November 2015, Missouri securities regulators sanctioned Inderlied and assessed him a fine of $20,000, required him to pay restitution of $17,500.

The two prior customer disputes were both resolved by monetary settlements paid to the customers.

In December 2015, Inderlied was ‘permitted to resign’ from Adirondack Trading Group following the censure by the  State of Missouri.

In January 2014, Inderlied was ‘permitted to resign’ from WIlbanks Securities who made the following allegations on FINRA records: “Rep was permitted to resign while under heightened supervision and investigation for improper recommendations to clients concerning variable annuities. The investigation revealed that rep encouraged clients to prematurely surrender variable annuities early in the surrender period for A-shares in various mutual fund shares to significant client harm. The firm followed up with every client and fully disclosed all compensation to them and all clients decided, in writing, for their investments to stand”.

Inderlied was employed by Adirondack Trading Group from 4/2015-12/2015. Prior to that he was with Investors Capital Corp. in Frisco, Texas, from 1/2014-3/2015, and before that with Wilbanks Securities from 6/2009-2/2014.

INVESTORS CAPITAL CORP. SUBJECT OF 21 REGULATORY MATTERS–CEASES OPERATIONS FALL 2016

Investors Capital Corp. withdrew its registration with FINRA in fall 2016. Investors Capital has been named in 21 regulatory matters and a number of customer arbitrations. For more information on Investors Capital Corp, follow this link. 

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

Thomas Schober- Former SII Investments Stockbroker-Sued by Customer Over Annuity Investments

UPDATE MARCH 2017Thomas Schober, formerly a broker with SII Investments discloses a pending customer dispute and two prior customer disputes that have been resolved. All of the disputes relate to investments in annuities.

In the currently pending FINRA arbitration #16-02558, a customer or SII Investments alleges damages of $350,000 for unsuitable investments in variable and fixed annuities.

ORIGINAL POST–March 3, 2016– Westborough, MA

Thomas P. Schober , a broker with SII Investments, entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  he recommended unsuitable annuity exchanges in the accounts of two senior customers (ages 83 and 84)  and then concealed the source of the funds on the annuity transaction documents in violation of FINRA rules.

The AWC alleges finds that the investors, one of which suffers from dementia, were conservative investors with limited financial means and counted on the income from their investments to fund their retirement. Schober made the following trades, per FINRA:

JM (1)

LP

Since all of the exchanged were still in the surrender period, the customers paid $154,642 in surrender charges thereby generating a huge commission for Schober and his employing firm  SII Investments.

AWC No.  2015044007001

Schober was permanently barred from association with any FINRA member in all capacities.

FINRA records disclose that Schober was registered with SII Investments from 6/2007 to 1/2015. Prior to that Schober was registered with Legacy Financial Services 8/1998-6/2007.

If you suffered losses in an account handled by Thomas Schober, you may be able to recover damages from his 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

Dalton Strategic Investment Services Stock Broker Sanctioned Over Annuity Sales- Coral Gables, FL

October 14, 2015-Coral Gables, FL

Andrew M. Abern , entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he failed to appear at an on the record interview requested by FINRA to answer questions relating to recommendations he made to customers regarding the purchase and sale of variable annuities.

AWC No.  2015043654301

Abern was barred from the securities industry.

This was not Abern’s first regulatory issue involving the sale of annuities. In 2012, FINRA accepted a Letter of Acceptance, Waiver and Consent in which Abern,  consented to findings by FINRA that he violated NASD Conduct Rules 2310 and 2111 by providing customers with variable annuity expense disclosure forms that understated the annual expenses, and by engaging in an unsuitable transaction with a customer. Abern consented to a $25,000 fine in that matter.

According to FINRA records,Abern  was registered with Dalton Strategic Investment Services  from 2/2010-9/2014. Prior to that he was registered with Direct Capital Securities from 6/2008-2/2010.

If you have losses in an account handled by Abern, you may be able to recover damages from the firm that employed him.

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

Deborah Romary & Harbor Financial Hit With Arbitration Award for Selling Annuity to Conservative Investor

January 21, 2015- Indianapolis, Indiana

A FINRA arbitration panel in Indianapolis, Indiana, ordered Harbor Financial Services and broker Deborah Ellen Romary to pay a customer over $60,000 in compensatory damages, plus attorney fees and costs of about $64,000 . The customer brought claims for breach of fiduciary duty and the Indiana Uniform Securities Act in connection with the broker’s recommendation that the customer invest in a flexible premium deferred annuity. The customer alleged that the advice to cash out his 401K and invest in an annuity was contrary to his conservative investment objective. Jeffrey Webb v Harbor Financial Services, et al, FINRA Case# 13-3305.

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