Our securities fraud attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Barry Rumpel (Rumpel) currently associated with IFS Securities alleging unsuitable investments among other claims. The majority of the complaints involve variable universal life insurance policies (VULs). According to brokercheck records Rumpel has been subject to four customer complaints, one employment separation for cause, and one criminal matter.
In May 2016 Woodbury Financial Services, Inc. (Woodbury Financial) alleged that Rumpel engaged in a personal financial transaction with a client and terminated Rumpel. The most recent customer complaint was filed in October 2016 and alleged that a VUL sold to the customer and his wife were not suitable and that wrong net worth was entered in application in 2011 and 2012. The claim was dismissed.
VULs are often unsuitable life insurance products for many investors due to their high costs compared to traditional life insurance policies. VULs can also lapse if policy premiums are not paid resulting in a complete loss of the investors capital without any life insurance benefit.