National Planning Corp, a broker/dealer unit of the annuities company, Jackson National Life Insurance, has been ordered by the Financial Industry Regulatory Authority (FINRA) to pay $2.6 million to their 84 year-old client who purchased fraudulent promissory notes, non-traded real estate investment trusts (REITs) and other unsuitable investments recommended by their former broker, William Glaser, now serving a three-year sentence in prison.

The award was granted by a three-person FINRA arbitration panel in St. Louis, MO and included: $1.58 million in compensatory damages, $1 million in punitive damages, and approximately $46,000 in costs.  The 84 year-old victim was a client of William Glaser who was employed at National Planning Corp for nine years.  William Glaser, who was not named in the lawsuit, was barred by FINRA in 2017 for failing to cooperate in a FINRA investigation into Glaser’s termination by National Planning Corp for allegations of selling-away.

According to the St. Louis US Attorney’s office, William Glaser, 61-years-old, is currently serving a three-year sentence for wire fraud due to selling $1 million of high-yield promissory notes clients bought through self-directed IRAs that Glaser helped the clients establish. Glaser misled the clients by telling them he had invested their money in the unsecured notes, which were issued by a now-liquidated construction firm, when in fact he had not.

National Planning Corp was accused of negligent supervision, breach of contract, common law fraud, and negligent misrepresentation in the arbitration claim filed in September of 2017.

In addition to encouraging investors to buy the phony notes and high-cost REITs, William Glaser allegedly pushed his 84 year-old client to prematurely cash in annuities and buy nearly identical products. This switching cost his elderly client $300,000 in surrender fees.

If you or an elderly family member have been a victim of National Planning Corp’s former broker, William Glaser, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents our clients nationally before FINRA on a contingency fee basis.