Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP are currently investigating advisor John Eads (Eads), formerly registered with Lion Street Financial, LLC (Lion Street Financial) and AXA Advisors, LLC (AXA Advisors) out of Titusville, Florida. According to a BrokerCheck report, Eads has been subject to at least seven customer complaints and one employment termination for cause during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Eads concern allegations of variable annuity sales practices.
In January 2018 a customer alleged Eads over forgery. In February 2018 Lion Street Financial discharged Eads claiming that he submitted client documents without their legal signatures.
In June 2016 a customer filed a complaint alleging that in March 2015 Eads recommended an unsuitable annuity causing damages. The claim settled for $85,821.
In April 2016 a customer alleged that Eads misrepresented and unsuitably recommended variable annuities causing damages. The claim was denied.
Variable annuities are complex financial and insurance products. In fact, the Securities and Exchange Commission (SEC) released a publication entitled Variable Annuities: What You Should Know encouraging investors to ask questions about the variable annuity before investing. Essentially, a variable annuity is a contract with an insurance company under which the insurer agrees to make periodic payments to you. The investor chooses the investments made in the annuity and value of your variable annuity will vary depending on the performance of the investment options chosen. The primary benefits of variable annuities are the death benefit and tax deferment of investment gains. However, the benefits of variable annuities are often outweighed by the terms of the contract that include exorbitant expenses such as surrender charges, mortality and expense charges, management fees, market-related risks, and rider costs.
According to newsources, a study revealed that 7.3% of financial advisors had a customer complaint on their record when records from 2005 to 2015 were examined. Brokers must publicly disclose reportable events on their BrokerCheck reports that include customer complaints, IRS tax liens, judgments, investigations, terminations, and criminal cases. In addition, research has shown a disturbing pattern with troublesome brokers where brokers with high numbers of customer complaints are not kicked out of the industry but instead these brokers are sifted to lower quality brokerage firms with loose hiring practices and higher rates of customer complaints. These lower quality firms may average brokers with five times as many complaints as the industry average.
Eads entered the securities industry in 1997. From November 2009 to December 2017, Eads was registered with AXA Advisors. From November 2017 to February 2018, Eads was associated with Lion Street Financial out of the firm’s Titusville, Florida office location.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.