Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Jordan Helfgott (Helfgott), previously associated with MML Investors Services, LLC, has at least 3 disclosable events. These events include one customer complaint, 2 regulatory events, alleging that Helfgott recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on May 26, 2022.
Without admitting or denying the findings, Helfgott consented to the sanctions and to the entry of findings that he forged seven signatures of a firm customer and his son on a variable life insurance application and related documents. The findings stated that Helfgott forged the signatures of a firm customer and his son, the proposed insured, on four documents – three times on a variable universal life insurance application and four times on three documents evidencing receipt of the policy. Helfgott submitted all four forged documents for processing. The customer authorized Helfgott to purchase the variable universal life insurance policy on the customer’s behalf, but neither the customer nor his son gave him permission to sign their names on any of the documents.
FINRA BrokerCheck shows a final customer complaint on February 22, 2022.
The Representative, while acting as an agent for an insurer, signed the names of the policy owner and the proposed insured on a life insurance application.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $600.00 on January 07, 2021.
Customer advised that while he intended to purchase a Variable Universal Life Insurance policy in April 2020 on the life of his son, when provided with the application documents that were signed at the time of the sale, the customer stated the documents were not signed by him. Pursuant to the customer’s request, the company canceled the policy and refunded the premiums paid.
Financial Advisors providing advice to retail investors are required to adhere to the SEC’s Regulation Best Interest (Reg BI). Reg BI applies a ‘best interest’ standard for broker-dealers and their associated people. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts.
The care obligation also requires the broker to address the client’s specific needs through obtaining specific investment profile information on the client. The associated person typically will ask the customer for information such as the investor’s risk tolerance or ability to withstand account value declines or increases; experience with investments available; investment objectives and goals; investment time horizon; liquidity needs; assets such as investment accounts held at other financial institutions; tax information; their age and retirement plans; and other information that a customer may want to provide to the advisor to help them to properly address the services needed. Reg BI was meant to enhance the duties that registered representatives have to their clients by applying fiduciary principles to transactions and investment strategies by prohibiting brokers from placing their own financial interests ahead of the best interests of their client – the investor. There are different sub-parts of the Reg BI rule that financial professionals must comply with when providing advice. Among those is the duty of care obligation that mandates associated persons to evaluate investment options, review and be knowledgeable the risks and rewards of the investment or service, compare alternative investment products, and ensure that the overall investment strategy aligns with the client’s goals and is in their best interests.
Next, the broker must understand the investor’s investment background and profile. A customer’s profile includes information that describes the investor’s financial situation and needs. Information here will include their outside securities accounts and investments; relevant assets and debts; tax bracket; age; liquidity needs; risk tolerance; investment time horizon; experience with investing; investment objectives; and any other relevant information that the investor may choose to disclose pertinent to their situation. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest. An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Helfgott has been in the securities industry for more than 10 years. Helfgott has been registered as a Broker with MML Investors Services, LLC since 2021.
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.