Finra追随两个经纪人,以进行可变年金替代欺诈

The Financial Industry Regulatory Authority has suspended broker Cecil Ernest Nivens for two years for allegedly causing harm variable annuity (VA) investors who were his customers. According to the self-regulatory organization’s filing, Nivens failed to abide by his firm’s written supervisory procedures when he didn’t properly process certain variable universal life purchase transactions as replacement trades even though he was the one who recommended that each purchase be paid for from an existing variable annuity fund.

Nivens earned over $185K in commissions for the variable annuity life purchase transactions, in addition to commissions he was already paid for the variable annuities when they were sold to the same customers. Now, Nivens must disgorge those commissions.

FINRA指责Nivens对客户造成“相当大的危害”。除了过多的佣金外,他的八个客户还支付了超过4,000美元的不必要的投降费用。他的前公司已经支付了超过5.5万美元的费用,以解决涉及他的果欺诈客户投诉。

Variable Annuities
When brokers recommend that clients replace annuities under the US tax code Section 1035, the client is given a tax-free transfer and the financial representative is paid a commission. However, variable annuity exchange fraud can happen when the broker purposely fails to note that an annuity replacement is a 1035 exchange. The Client not only ends up paying a higher annuity fee and surrender charge to the exchange, but also usually incurs substantial tax liabilities. FINRA contends that this is what Nivens did with his customers.

FINRA’s complaint claims that from 2010 until Nivens left NYLife Securities in 2014, he was under heightened supervision related to replacement transactions he was involved in. The regulator believes that this stricter scrutiny compelled him to hide the replacement transactions to avoid detection. A firm supervisor that examined Nivens’ VUL transactions reportedly did not know that a number of them were replacement sales.

Former Legend Equities Broker Walter Marino Accused of Inappropriate VA Recommendations
In an unrelated but similar variable annuity fraud case, FINRA has filed a complaint against ex-broker Walter Marino who was previously with Legend Equities Corporation. He is accused of recommending exchanges of non-qualified variable annuities to two clients even though he had no reasonable grounds.

马里诺从交易中获得了约6万美元的收入。同时,他的客户没有获利。取而代之的是,他们认为SRO,他们支付了超过82,000美元的投降费用。Marino还被指控不应用第1035条的免税交换条款,该规定使客户承担税收负债。

现在,他必须欺骗不义之的痛苦,并向受到伤害的客户赔偿。

这不是马里诺的第一次进攻。他的Finra BrokerCheck记录显示了16个披露,其中大多数是客户纠纷。除传奇股票外,他还与13家公司合作,包括本杰明证券和林肯投资。bob200体育

Variable Annuities
AsInvestmentNewsreports, last year FINRA issued $30.3M in 30 variable annuity cases—a 191% increase in fines from 2015. This was the year that the regulator sanctioned MetLife Securities $25M over misrepresentations and omissions involving variable annuity replacements. That included $5M to customers and a $20M fine.

监管机构说,该公司的每一次虚假陈述和遗漏给人的印象是,可变年金更换对客户有好处,即使他们通常比已经拥有的VAS昂贵。据称,成千上万的客户受到了影响。

FINA noted that firm’s VA replacement business made Metlife Securities at least $152M in commissions over 6 years.

If you suspect that your losses are due to variable annuity fraud, contact Shepherd Smith Edwards and Kantas, LTD LLP today.

FINRA

More Blog Posts:
MetLife Securities Ordered to Pay $25M FINRA Sanction Related to Variable Annuities, Stockbroker Fraud Blog, May 5, 2016

FINRA向前经纪人提出投诉,以换向老年客户的变量年金销售额,股票经纪人欺诈博客,2017年4月26日

汇丰银行下令在2017年9月30日,机构投资者证券博客上支付1.75亿美元的罚款。bob200体育

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