In a recent development, a customer dispute has been filed against Kyle Wittgren, a former broker with NYLIFE SECURITIES LLC (CRD 5167) in Texas. The allegation, currently pending resolution, revolves around the sale of five variable universal life insurance policies in December 2021. The trustee alleges that Wittgren failed to present alternative options, limiting the choices to the recommended policies.
According to the disclosure on FINRA’s BrokerCheck (CRD #6221630), Kyle Wittgren was registered with NYLIFE SECURITIES LLC as a broker from April 26, 2016, to April 29, 2021, in the state of Texas. The customer dispute, filed on January 22, 2024, is currently awaiting resolution.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Kyle Wittgren and NYLIFE SECURITIES LLC in connection with this matter. The firm encourages individuals who have suffered investment losses to contact them for a free consultation by calling their toll-free number: 1-888-885-7162 .
Understanding Variable Universal Life Insurance and FINRA Rules
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Variable universal life insurance policies combine a death benefit with an investment component. The policyholder’s premiums are allocated to various sub-accounts, which invest in mutual funds or other securities. The policy’s cash value and death benefit can fluctuate based on the performance of these investments.
FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance.
In this case, the allegation suggests that Kyle Wittgren may have violated the Suitability Rule by not presenting the trustee with alternative options, potentially limiting the trustee’s ability to make an informed decision based on their specific needs and circumstances.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with many victims being seniors or inexperienced investors.
The Importance of Suitability for Investors
The concept of suitability is crucial for investors, as it helps ensure that the financial products and strategies recommended by their advisors align with their unique financial goals, risk tolerance, and overall investment profile. When a broker fails to consider these factors, investors may find themselves with unsuitable investments that expose them to unnecessary risk or fail to meet their objectives.
Unsuitable investments can lead to significant financial losses, which can have a profound impact on an investor’s life, affecting their ability to save for retirement, pay for their children’s education, or achieve other important milestones. By understanding their rights and the obligations of financial advisors, investors can better protect themselves and make informed decisions about their investments.
Red Flags and Recovering Investment Losses
Investors should be aware of potential red flags that may indicate financial advisor malpractice, such as:
- Lack of diversification in investment recommendations
- Failure to disclose risks associated with recommended products
- Recommendations that do not align with the investor’s risk tolerance or investment objectives
- Excessive trading or churning of accounts to generate commissions
If an investor believes they have suffered losses due to unsuitable investments or financial advisor malpractice, they may be able to recover their losses through FINRA arbitration. This process allows investors to seek compensation from their financial advisor or brokerage firm without going to court.
Haselkorn & Thibaut, with over 50 years of combined legal experience and a 98% success rate, has helped countless investors recover their losses through FINRA arbitration. The firm operates on a contingency fee basis, meaning they do not charge any fees unless they successfully recover money for their clients.
Investors who have concerns about their investments with Kyle Wittgren or NYLIFE SECURITIES LLC are encouraged to contact Haselkorn & Thibaut for a free consultation to discuss their legal options. With a team of experienced attorneys and a commitment to protecting investors’ rights, Haselkorn & Thibaut is well-positioned to help investors navigate the complex world of investment fraud and malpractice.
