BRIAN L FREEMAN & Minnesota Life Ordered to Pay $1Million

In a recent article from Financial Advisor, they report that a FINRA arbitration panel has ordered Minnesota Life Insurance Company and BRIAN L FREEMAN a former registered representative with Securian Financial Services to pay nearly $1 million to a California couple who claimed they were allegedly recommended putting a major cash infusion into a variable life insurance policy.  This allegedly resulted in inflated premiums and huge commissions for the representatives.

According to the Financial Advisor, the Financial Industry Regulatory Authority ordered Minnesota Life and BRIAN L FREEMAN to pay $295,200 in compensatory damages to the California couple. The panel additionally awarded the couple $106,720.00 in damages for return of commissions; $246,312.00 in costs for expert witness fees; $293,355.00 in attorneys’ fees; and $33,710.00 in costs for the stenographer. The total was approximately $975,000.00 in fees and damages against Freeman and Minnesota Life, a subsidiary of Securian. BRIAN L FREEMAN is now listed as an advisor at Cetera, which bought Securian in 2023.

When contacted by the Financial Advisor, the California couple said that they were allegedly told by Freeman to put $270,000.00 into a long-standing policy in 2022, but it generated $107,000.00 in commission for the advisor.

According to the filing by the couple in the California Superior Court in Los Angeles County, their original policy purchased in the 2000s was at first a term and then a variable adjustable life policy worth $2 million. They allege that BRIAN L FREEMAN told them that after a $275,000 lump sum injection, their premiums on the policy would be $24,000 per year "through the age of 85. Instead, the policy Freeman arranged required an annual premium of $147,600.00,” according to Financial Advisor. The couple in the state filing alleged the Minnesota Life insurance policy was “inherently deceptive” and “abusive.” They also alleged it encourages agents “to impose policy acquisition charges and pay its agents sales commissions over and over again for the same policy, which is unheard of wholly inconsistent with the market.”

According to the article, the California couple sued for “intentional misrepresentation including omission of material facts; negligent misrepresentation; professional liability; breach of fiduciary duty; breach of contract; financial abuse of an elder.” The state court ordered the case to be heard in FINRA arbitration.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, BRIAN LEE FREEMAN (BRIAN L FREEMAN) has 40 years of experience in the securities industry and has been listed with 4 firms.  Freeman is currently registered both as a broker and as an investment advisor with CETERA WEALTH SERVICES, LLC of Newport Beach, California, since 8/10/2023. BRIAN L FREEMAN was registered Securian Financial Services of  Newport Beach, California, as a broker from 06/23/1988 - 08/10/2023 and as an investment advisor from 01/18/2002 - 08/10/2023.  Freeman has two disclosures on his FINRA CRD report, both are “Customer Disputes.”

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