Kurt Petrucci, a broker with MML Investors Services, LLC, is facing allegations of misconduct related to the sale of variable and fixed annuities. According to a recent customer dispute filed on January 12, 2024, the complainant alleges that Petrucci failed to properly explain the limitations and surrender penalties associated with the annuities sold to the complainant in or around 2022.
The complaint further alleges that Petrucci offered to sell the complainant’s business for a fee of $30,000 and subsequently invested the proceeds from the sale into the annuities without fully disclosing the terms and conditions. The complainant is seeking the return of all funds invested in the annuities.
As of March 24, 2016, Petrucci has been registered as a broker with MML Investors Services, LLC (CRD 10409) in the state of Florida. The customer dispute, identified as Case #202401120147, was denied by the firm. Petrucci’s FINRA CRD number is 3091334.
Understanding Variable and Fixed Annuities
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Variable and fixed annuities are investment products that provide a stream of payments to the investor over a specified period or for the remainder of the investor’s life. Fixed annuities offer a guaranteed fixed rate of return, while variable annuities’ returns are tied to the performance of underlying investments, such as mutual funds.
Annuities often come with surrender charges, which are fees imposed if the investor withdraws money from the annuity before a specified period. These charges can be substantial and may last for several years. FINRA Rule 2330 requires brokers to ensure that any annuity recommendation is suitable for the customer based on their investment profile, including their age, financial situation, and investment objectives.
The Importance of Proper Disclosure
Brokers have a duty to fully disclose all material information related to the annuities they recommend, including any limitations on withdrawals and the existence of surrender charges. Failure to do so can result in investors being unable to access their funds when needed or incurring significant penalties.
Why It Matters for Investors
The allegations against Kurt Petrucci highlight the importance of working with trustworthy financial advisors who prioritize their clients’ best interests. Investors should be aware of the potential risks and limitations associated with annuities and other complex investment products.
If an investor believes they have been misled or suffered losses due to broker misconduct, they may be able to recover damages through FINRA arbitration. This process allows investors to seek compensation for losses caused by improper or fraudulent investment practices. Investment fraud and bad advice from financial advisors can have devastating consequences for investors, making it crucial to take swift action if misconduct is suspected.
Red Flags for Financial Advisor Malpractice
Investors should be vigilant for potential red flags that may indicate financial advisor malpractice, such as:
- Failure to fully disclose risks, fees, or surrender charges associated with investment products
- Recommending unsuitable investments based on the investor’s age, risk tolerance, or financial goals
- Engaging in unauthorized transactions or mishandling client funds
Seeking Legal Assistance
If you suspect that you have been a victim of financial advisor misconduct, it is crucial to seek legal guidance from experienced investment fraud attorneys. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Kurt Petrucci and MML Investors Services, LLC.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. The firm operates on a contingency basis, meaning clients pay no fees unless a recovery is obtained.
Free Consultation for Affected Investors
If you have invested with Kurt Petrucci or MML Investors Services, LLC and believe you may have been a victim of misconduct, Haselkorn & Thibaut offers free consultations to help you understand your legal options. Call their toll-free number at 1-888-628-5590 to speak with an experienced investment fraud attorney and learn how you can protect your rights and recover your losses.
