November 5, 2014-Los Angeles, CA
In an arbitration hearing before The Financial Industry Regulatory Authority (FINRA) Wells Fargo Advisors and one of their brokers were ordered to pay over $144,000 to two individuals and a trust who file the claim alleging that the sale of sale of two annuities (Lincoln Choice Plus Variable Annuities) was unsuitable. Chase,et al v. Wells Fargo Advisors & Mark S. Vandeburgt Case 13-0333.
In addition, the Claimants alleged damages for breach of fiduciary duty, fraudulent misrepresentation, breach of contract, failure to supervise, elder abuse and emotional distress.
Annuities are often misunderstood by investors and many times the ‘guaranteed’ rate of return that was used to sell the product is deceiving, resulting in actual income far less due to service fees and other hidden charges to the investor. With variable annuities there is investment risk associated with ownership, a fact often downplayed at the time of sale.
The importance of liquidity is often downplayed and underestimated at the time of sale. Having too much of one’s liquid net worth locked up in an annuity that has significant surrender charges is a real problem if cash is need for health or living expenses.
If you feel you were sold an annuity that is not suitable for you and feel that the risks were misrepresented, contact us to learn how you may be able to recover damages.
Rex Securities Law , located in Boca Raton, FL, 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.
561 391 1900