According to BrokerCheck records financial advisor John Davenport (Davenport), currently employed by Liberty Partners Financial Services, LLC (Liberty Partners) has been subject to three customer complaints, one regulatory action, one employment termination for cause, one bankruptcy, and two judgement or tax liens during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the customer complaints against Davenport concern allegations over variable annuity sales practices.
In January 2019 FINRA alleged that Davenport consented to the sanctions and to findings that he placed two securities transactions for a registered representative of another firm and split the commissions generated from the transactions with that representative, without the knowledge or consent of either firm. FINRA determined that Davenport paid the registered representative from the other firm approximately $50,000 on the variable annuity transactions ostensibly as a referral fee causing his firm’s books and records to be inaccurate. FINRA further made findings that Davenport permitted his assistant to use a personal email address to communicate with securities customers concerning business-related matters, which was not approved by the firm, causing the firm to fail to retain the emails among its books and records.
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.