UPDATE April 2017–The 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.
Florida-561 391 1900