annuity fraud attorney

Advisor Michael Lyle Has Annuity Complaints

June 4, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Michael Lyle (Lyle), currently employed by Transamerica Financial Advisors, Inc. (Transamerica) has been subject to four customer complaints and one tax lien during during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the customer complaints against Lyle concern allegations over variable annuity sales practices.

In January 2019 a customer filed a complaint alleging that Lyle violated the securities laws by, among other things, that the product was misrepresented in that she was told she would receive returns of $7,500 monthly but that Lyle had failed to inform her of the IRS penalties for early withdrawals causing $100,000 in damages. The claim is currently pending.

In June 2018 a customer filed a complaint alleging that Lyle violated the securities laws by, among other things, that the product was unsuitable and that Lyle failed to inform her of the IRS penalty for early withdrawals causing $73,594 in 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.

Xavier Patino Sanctioned Over Variable Annuity Sales Practices

May 22, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Xavier Patino (Patino), currently employed by Newbridge Securities Corporation (Newbridge Securities) and formerly with J.P. Morgan Securities LLC (JP Morgan) has been subject to one regulatory action, one one employment termination for cause, and two customer disputes during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the regulatory action against Patino concerns allegations over variable annuity sales practices.

In June 2018 Patino consented to sanctions and to the entry of findings that Patino made material misstatements to a customer and guaranteed the customer against loss in connection with a variable annuity purchase. FINRA also found that Patino solicited this customer to purchase a $192,000 variable annuity contract with the variable annuity prospectus describing the features and risks of the product. However, FINRA found that prior to finalizing the sale the client presented Patino with a document she had prepared and asked Patino to sign it explicitly signifying that he agreed with the statements. FINRA found that thereafter, the customer’s variable annuity lost value, she complained to Patino’s member firm about her losses, and presented the guarantees signed by Patino.

In April 2017, JP Morgan discharged Patino claiming that he admitted to signing an unapproved document that guaranteed the customer would not lose principal on an investment in violation of firm policy.

NYLife Broker Ronald Walker Subject to Complaints Over Annuity Practices

January 4, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Ronald Walker (Walker), currently employed by NYLife Securities LLC (NYLife) has been subject to five customer complaints during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the customer complaints against Walker concern allegations over variable annuity sales practices.

In June 2018 a client complained that Walker violated the securities laws because a client claimed she was not aware that she would be subject to a new surrender period when she agreed to move funds from one variable annuity to another in February 2017. The customer also alleged that being invested in 100% high yield bond funds does not match her risk tolerance. The customer alleged $13,000 in damages. The claim is currently pending.

In November 2017 a client complained that Walker violated the securities laws because a client claimed that the firm approved modifications to two variable annuity contracts. The firm denied the claim.

In October 2017 a client complained that Walker violated the securities laws alleging that he recommended a rider to his variable annuity contract purchased in September 2005 that was unnecessary and expensive. Customer alleges that he did not need the rider because he does not intend to withdraw from the variable annuity. The claim settled for $11,020.58.