The insurance and annuity industry taken giant steps to burnish its image and weed out unethical practitioners. However, there are still rogue advisors out there.
One of our industry insiders, Harry Lew, chief content officer of the National Ethics Association (NEA), sent in a list of advisors who have been charged with various indiscretions.
I’ve included those below, but wanted to say that on a personal level, the advisors I have had the opportunity to sit down with and talk to are doing the right thing. We want to get those “good” apples out in the public as well. If you have a good advisor story, please contact me to discuss at [email protected]. I look forward to hearing from you.
A Massachusetts Federal judge ordered a broker to pay over $500,000 for defrauding a 9/11 widow. According to authorities, the broker misled the victim into thinking her investments were safe, while churning her funds in a manner contrary to her interests. During a two-year period, the SEC alleged that the customer’s account, which was funded by a payment from the September 11th Victim Compensation Fund, decreased from about $3.7 million to about $1.6 million. While working with the victim, the advisor received $483,460 in commissions. As part of the settlement, the broker agreed to be barred from any future association with a broker-dealer, investment advisor, municipal securities dealer or transfer agent.