Tag Archives: annuity churning

Fifth Third Securities Hit With $6M Regulatory Sanction Over Variable Annuity Sales

May 2018

According to a FINRA News Release,  Fifth Third Securities was fined $4 million and required to pay $2 million in restitution for failing to appropriately consider and accurately describe the costs and benefits of variable annuity (VA) exchanges, and for recommending exchanges without a reasonable basis to believe the exchanges were suitable for customers.

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.

The exchange of variable annuities are subject to regulatory requirements to ensure that brokers have a reasonable basis to recommend them, and their supervisors have a reasonable basis to approve the sales. VA’s are complex investments and often sold to retirees and those anticipating retirement.

In addition, FINRA found that Fifth Third had failed to comply with a prior settlement in 2009 with FINRA involving VA’s.

Fifth Third Securities has been a FINRA member since 1939 and has more than 1,300 brokers operating from 1,100 offices located in these states:

  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Kentucky
  • Michigan
  • North Carolina
  • Ohio
  • Tennessee
  • West Virginia

FINRA records disclose that Fifth Third Securities has 36 prior regulatory events.

If you have questions about losses  an account at Fifth Third Securities, call for a no charge consultation to learn how you may be able to recover damages.

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

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