Securities Lawyers Blog
According to BrokerCheck records financial advisor George Shadie (Shadie), formerly employed by NYLife Securities LLC (NYLife Securities) has been subject to one employment termination for cause, five customer disputes, and three civil liens or judgements during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the customer complaints against Shadie concerns allegations over variable annuity sales practices.
In July 2019 a customer complained that Shadie violated the securities laws by alleging that Shadie sold two variable annuities issued on or about November 18, 2015 and December 17, 2015 were unsuitable investments due to liquidity restrictions and various fees associated with the accounts. The claim was settled for $45,000.
In February 2019, NYLife Securities discharged Shadie claiming that he was terminated after the company’s review of his business practices raised a number of concerns regarding the quality of his business.
In October 2018 a customer complained that Shadie violated the securities laws by alleging that transactions in January and May 2018 in two variable annuities were initiated without her authorization. Customer demands rescission of all products purchased and compensation in the amount of $100,000. The claim was settled for $60,000.
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 show 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.
Shadie entered the securities industry in 1995. From January 1995 until March 2019 Shadie was registered with NYLife Securities out of the firm’s Wilkes Barre, Pennsylvannia 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.