Variable Annuities

Former Broker Peter Orlando Accused Of Improperly Obtaining Control Of Client’s Affairs

June 28, 2018 | Silver Law Group

Peter Orlando (CRD #1142715) is a former registered broker, last employed with SCF Securities, Inc. (CRD #47275) of Fall River, MA. Previous employers include MetLife Securities (CRD #14251), Morgan Stanley (CRD #149777 and #8209), and Investors Capital Group (CRD #30613) He has been in the industry since 1983. His current employer and employment status is unknown.

Orlando is the subject of a regulatory disciplinary action involving one of his clients. From August through September of 2014, Orlando allegedly obtained control of the financial affairs of an elderly widow (named “DW” in the complaint.) He became the primary beneficiary and executor of her will, with his wife as the contingent beneficiary. He obtained two powers of attorney (POA), one for health and one known as a “durable POA.”

It is against MetLife’s policies for a representative to become involved in a client’s financial affairs, except in the case of family members. There is no indication that the client was also a family member. In addition to a opening a joint account with Orlando, the client also changed her will, closed two bank accounts in favor of the joint one, and gave him two powers of attorney. Orlando never notified the firm that he was acting as her personal representative in her affairs.

First Nationle Solution LLC, United RL Capital Services, and Percipience Global Corp. $102 Million Ponzi Scheme Attorneys

June 20, 2018 | Silver Law Group

The SEC has shut down a $102 Million Ponzi Scheme that was defrauding investors in several states. The complaint that was filed in federal district court in Manhattan charges Perry Santillo from Rochester, New York, Christopher Parris from Rochester, New York, Paul LaRocco from Ocala, Florida, John Piccarreto from San Antonio, Texas, and Thomas Brenner from Orville, Ohio. These brokers are said to have defrauded over 600 investors through sales of securities in issuers that they controlled including the following: First Nationle Solution LLC, United RL Capital Services, and Percipience Global Corp. If you or someone you know lost their investment by investing with one of these brokers and/or companies, then it is highly recommended to speak to an attorney in order to assess your potential legal options to recover your investment capital.

The SEC Allegations of Fraud

Silver Law Group is Investigating Melvin Case of LPL Financial

May 1, 2018 | Silver Law Group

Melvin Case (CRD# 2393464) has been with LPL Financial in Jacksonville, Florida since 2008. In 2017, he was discharged from the firm in relation to a 2016 felony criminal charge in Duval County Circuit Court. Case pled guilty to exploitation of an aged adult and was sentenced to two years of probation. According to LPL Financial, Case was converting this elderly individual’s funds for his own personal benefit. This guilty plea also led FINRA to bring a regulatory action against Case in January 2018. FINRA found that Case failed to timely disclose his felony charge and guilty plea to the agency; he was suspended for six months and ordered to pay a $5,000 fine.

Case has also been the subject of several customer disputes. In 2017, one of Case’s customers brought a claim alleging Case made misrepresentations and poor recommendations in connection with the customer’s purchase of variable annuities. In another dispute from 2004, a Claimant similarly alleged that Pruco Securities (Case’s former employer) and Case made unsuitable recommendations and misrepresentations in connection with insurance products purchased by the Claimant. That case settled for $100,000, with Case responsible for paying two-thirds of the settlement.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires that its members refrain from engaging in fraudulent or deceptive practices with their customers.

Federal Employee Benefit Counselors Targeted Federal Government Employee Retirement Plan Participants With Variable Annuities Scheme.

August 2, 2017 | Silver Law Group

Silver Law Group and The Law Firm of David Chase are reviewing potential claims of fraudulent inducement of federal employees into purchasing high fee paying variable annuity products by LPL Financial LLC (CRD#6413) affiliated brokers Brandon Long (CRD# 5975459) , Christopher S Laws (CRD#4479529) , Johnathan Dax Cooke (CRD#5365691) and Danny Scott Hood (CRD#3236852).

Variable annuities (“VAs”) are highly-complex financial products. According to FINRA, a good way to think of a VA is as a cross between an insurance product and an investment product.

Like other annuities, a VA is a contract between the investor and an insurance company. The investor pays the insurer a single payment or a series of payments called premiums. In exchange for those premiums, the insurer promises to make periodic payments to you either immediately or at some point in the future.

Former Metlife Broker Brian P. Murphy Under Investigation Over Outside Business Allegations

June 6, 2017 | Silver Law Group

Silver Law Group is investigating former Pennsylvania-based Metlife Securities Inc. (CRD# 14251), also known as MSI Financial Services, Inc., broker Brian P. Murphy (CRD# 2953503) over allegations that he conducted outside business activities without the permission of his firm.

According to Murphy’s FINRA BrokerCheck report, Signator Investors, Inc. (CRD# 468) terminated Murphy after Murphy allegedly admitted to conducting an unapproved, outside business activity. FINRA barred Murphy in October 2016 after Murphy failed to respond to a FINRA inquiry.

The discharge follows five other disclosures on his BrokerCheck report. In 2000, Murphy was permitted to resign from his employing firm. In November 2014, Metlife terminated Murphy after he allegedly represented that he had a professional designation that he had not earned. In December 2015, a customer dispute alleging misrepresentations of variable annuities was settled for the full amount demanded.

Jed E. Tinder, Former Montana-based Western International Securities Broker Under Investigation

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former Montana-based Western International Securities, Inc. (CRD# 39262) broker Jed E. Tinder (CRD# 1013144) over allegations of unsuitability, recklessness and negligence.

According to Tinder’s FINRA BrokerCheck report, Tinder currently has three (3) pending FINRA arbitration complaints. The first, filed in September 2015, alleges unsuitable recommendations and damages in the amount of $1.2 million. The second, filed in July 2016, alleges unsuitability and damages in the amount of $187,000. The third, filed in August 2016, alleges recklessness, negligence and damages in the amount of over $181,000.

In 2006, though denied, a customer filed a complaint involving variable annuities and equity-indexed annuities.

Marcos Yanez, former LPL Financial Broker Under Investigation Over Variable Annuities Misrepresentation Allegations

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former Dallas, Texas-based LPL Financial LLC (CRD# 6413) broker Marcos Yanez (CRD# 5353857) over allegations that Yanez misrepresented certain aspects in the sale of a variable life insurance policy amidst other allegations.

According to Yanez’s FINRA BrokerCheck report, a customer filed a complaint against Yanez in March 2017. The FINRA arbitration complaint alleges misrepresentations in the sale of a variable life insurance policy, and that Yanez advised the customer to take out a margin loan in order to loan money to the advisor.

LPL Financial employed Yanez from December 2011 to March 2016 at its Dallas, Texas branch. According to Yanez’s detailed CRD report, Yanez operated under the moniker Staib Wealth Management from February 2014 until the name changed to Silver Sail Wealth Advisors in February 2015. Yanez is no longer registered with FINRA.

Permanently Barred Nebraska Broker Matthew L. Geiser Under Investigation

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former Nebraska-based Independent Financial Group, LLC (CRD# 7717) broker Matthew L. Geiser after FINRA permanently barred him.

According to Geiser’s FINRA BrokerCheck report, FINRA permanently barred Geiser from acting as a broker or otherwise associating with firms that sell securities to the public in November 2016. FINRA and Geiser entered in an Acceptance, Waiver & Consent (“AWC”) in which Geiser consented to the bar and findings that he refused to appear for FINRA on-the-record testimony in connection with an investigation into allegations of misconduct against Geiser, including allegations of unsuitable recommendations and misleading statements about variable annuities.

Geiser, who initially was employed by Princor Financial Services Corporation (CRD# 7717), was discharged by Princor in September 2015 for issues involving suitability recommendations. Princor is also known as Principle Securities, Inc. Since Princor’s discharge of Geiser, 11 FINRA arbitration complaints against Geiser have settled.

Cetera Subsidiaries Ordered to Pay More Than $6 Million for Variable Annuities Violations

January 17, 2017 | Silver Law Group

The Financial Industry Regulatory Authority (“FINRA”) fined eight firms, including VOYA Financial Advisors (CRD# 2882) (“VOYA”) and five broker-dealer subsidiaries of Cetera Financial Group (Cetera Advisor Networks LLC (CRD# 13572)), for failing to supervise sales of variable annuities (VAs). The eight firms are required to pay a fine of $6.2 million in total.

The eight firms and the respective fines are as follow: VOYA, fined $2.75 million; Cetera Advisor Networks, fined $750,000; Cetera Financial Specialists LLC (CRD# 10358), fined $350,000; First Allied Securities, Inc. (CRD# 32444), fined $950,000; Summit Brokerage Services, Inc. (CRD# 34643), fined $500,000; VSR Financial Services, Inc. (CRD# 14503), fined $400,000; Kestra Investment Services, LLC (CRD# 42046), fined $475,000; and FTB Advisors, Inc. (CRD# 17117), fined $250,000.

Cetera Financial Group owns Cetera Financial Specialists, Cetera Advisor Networks, First Allied, Summit, and VSR. For more information on Cetera, visit our firm’s background page on the broker-dealer and its subsidiaries.

FINRA Bars Ismail Elmas for Theft of Client Funds

February 3, 2015 | Silver Law Group

Ismail Elmas, of Virginia, submitted an AWC in which he was barred from association with any FINRA member in any capacity. Elmas was registered with CUNA Brokerage Services, Inc. from 2007 through 2013. He subsequently worked for CUSO Financial Services, L.P. until August 2014. Without admitting or denying the findings, Elmas consented to the sanction and to the entry of findings that he failed to provide documents and information FINRA had requested in connection with an investigation into allegations that he converted client funds for personal use and participated in an unauthorized outside business activity. (FINRA Case 2014042148801) Mr. Elmas was discharged by CUSO because he allegedly engaged in an improper outside business activity. CUSO also claims it is cooperating with a client where a variable annuity was improperly surrendered.

If you invested money with Ismail Elmas, you may be entitled to recover some of your investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.