Lee McPherson, a broker associated with Allstate Financial Services, LLC, is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, following allegations of variable annuity misconduct. The firm, with offices in Florida, New York, North Carolina, Arizona, and Texas, is offering free consultations to clients who may have suffered losses due to McPherson’s alleged actions.
According to a recent customer dispute filed on January 29, 2024, a client alleged that the information on their account investor profile was inaccurate and that the variable annuity investments recommended by McPherson did not align with their financial goals. The client also claimed that the surrender charge schedule associated with the annuity was not properly explained to them. The damage amount requested in the dispute was not disclosed, and the claim was ultimately denied.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. A study by the U.S. Government Accountability Office found that financial fraud targeting older Americans costs them an estimated $2.9 billion annually. It is crucial for investors to be aware of the risks associated with complex investment products like variable annuities and to work with reputable financial professionals who prioritize their clients’ best interests.
Understanding Variable Annuities and FINRA Rule 2330
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Variable annuities are complex investment products that combine features of insurance and securities investments. They offer tax-deferred growth potential and the option to convert the account balance into a stream of income payments. However, variable annuities also come with substantial fees, surrender charges, and potential market risks.
FINRA Rule 2330 governs the recommendation and sale of variable annuities by registered representatives. The rule requires brokers to ensure that their recommendations are suitable for the client based on their investment objectives, risk tolerance, financial situation, and needs. Brokers must also provide clients with a current prospectus and disclose important information, such as surrender charges and potential tax implications.
The Importance of Proper Variable Annuity Recommendations
Proper variable annuity recommendations are crucial for investors, as these products can have a significant impact on their financial well-being. Unsuitable recommendations can lead to:
- Excessive fees and surrender charges that erode investment returns
- Misalignment with the investor’s risk tolerance and investment objectives
- Lack of liquidity due to lengthy surrender periods
- Potential tax consequences when withdrawals are made
Investors who have suffered losses due to improper variable annuity recommendations may be entitled to recover damages through FINRA arbitration. Haselkorn & Thibaut, with their extensive experience and 98% success rate, can help investors navigate the arbitration process and seek the compensation they deserve.
Red Flags for Variable Annuity Misconduct
Investors should be aware of the following red flags that may indicate variable annuity misconduct:
- Recommendations that do not align with the investor’s risk tolerance, investment objectives, or financial situation
- Failure to disclose or adequately explain surrender charges and other fees
- Pressure to invest a significant portion of assets in variable annuities
- Lack of transparency regarding the product’s features and risks
Seeking Help from Experienced Investment Fraud Attorneys
If you suspect that you have been a victim of variable annuity misconduct, it is essential to seek the help of experienced investment fraud attorneys. Haselkorn & Thibaut, with their team of skilled lawyers and over 50 years of combined experience, can provide the guidance and representation you need to recover your losses.
The firm operates on a contingency fee basis, meaning they charge no fees unless they successfully recover funds for their clients. To discuss your case and explore your legal options, contact Haselkorn & Thibaut at 1-888-885-7162 for a free consultation.
Investors can also check the background and disciplinary history of their financial advisors using FINRA’s BrokerCheck tool. This free online resource provides information on a broker’s licensing, employment history, and any regulatory actions or customer complaints filed against them.
As the investigation into Lee McPherson and Allstate Financial Services, LLC unfolds, investors must remain vigilant and proactive in protecting their rights and interests. By working with experienced investment fraud attorneys like those at Haselkorn & Thibaut, investors can hold financial advisors accountable for their misconduct and seek the justice they deserve.
