FINRA, the Financial Industry Regulatory Authority, is investigating independent broker-dealers that sold variable annuities with subaccounts invested in hedge funds that resulted in $18 million in client losses during the credit crisis writes Bruce Kelly in a recent article for InvestmentNews.com.
FINRA has been investigating the sale of a variable annuity issued by Sun Life Financial Inc. The two hedge funds were the Foresee Strategies Insurance Fund and the Foresee Strategies 3(c)(1) Insurance Fund LP, which were related to a group called the SALI Multi-Series Fund LP.
Kelly writes that the broker-dealers that have faced FINRA arbitration complaints from investors regarding the Sun Life annuities include: Geneos Wealth Management Inc., Lincoln Financial Network, National Planning Corp., SagePoint Financial Inc., and FSC Securities Corp.
A FINRA spokeswoman Michelle Ong would say only that the brokerage industry's self-regulator does not confirm investigations.
A FINRA arbitration panel has issued a $284,000 award to a SagePoint client, who filed a claim against the firm last year. His arbitration complaint alleged unsuitability, common law fraud, breach of fiduciary duty and negligence related to investments in the SALI Multi-Series Fund and the SALI Multi-Series Fund 3(c) (1) LP.
InvestmentNews.com writes that the fund was put together in 2004 to 2007, which was called a period of low volatility. The strategy collapsed when the market crashed beginning in September 2008 and then rebounded sharply in March 2009. One fund lost 90% of its value; the other lost 75%.
Three of the broker-dealers have resolved litigation, with more to come against SagePoint and National Planning. Investors are also suing Sun Life Financial in state court in Tennessee.
If you or a family member were sold a variable annuity with a hedge fund and experienced financial losses, contact an attorney at Soreide Law Group for a free consultation on how to recover your investment losses. To speak with an attorney, call 888-760-6552, or visit https://www.securitieslawyer.com.
Investors potentially experienced sales practice violations by securities broker Matthew R. Carbray [CRD: 4565811, Northampton, Massachusetts], based on public information on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Carbray has worked for Kestra Investment Services LLC since July 21, 2006, and Kestra Advisory Services LLC since April 19, 2016. Continue reading to learn more about Carbray’s […]
Investors apparently complained about securities broker Juan Pablo Benavides [CRD: 4288007, Miami, Florida], given the public information found on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Benavides has worked for Merrill Lynch as a securities broker since November 22, 2000, and as a financial advisor since March 15, 2004. See below to find out more about […]
Investors potentially incurred losses because of securities broker Sandy Meyer Leff [CRD: 1796695, Atlanta, Georgia], according to information disclosed through Financial Industry Regulatory Authority (FINRA) BrokerCheck. Leff has worked for Carter Terry Company Inc. as a securities broker since October 6, 2016, and as a financial advisor since October 21, 2016. Keep reading to discover […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com