Amanda Hale, a broker and investment advisor associated with Ameriprise Financial Services, LLC, is currently facing allegations from a former client regarding misrepresentation and failure to fully disclose the details of an income benefit rider in a variable annuity purchased through a 1035 exchange transaction in February 2015. The customer dispute, filed on January 4, 2024, was denied by the firm, but the allegations have raised concerns among investors.
According to the disclosure on FINRA’s BrokerCheck (CRD #4072033), the client alleges that Hale misrepresented or failed to provide complete information about the potential facets of the income benefit rider associated with the variable annuity. The details of the alleged damages or settlement amount have not been disclosed.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Amanda Hale and Ameriprise Financial Services, LLC in connection with these allegations. The firm encourages any clients who have suffered losses due to potential misconduct to contact them for a free consultation.
Investment fraud and bad advice from financial advisors are unfortunately common occurrences. According to a Forbes article, the U.S. Securities and Exchange Commission (SEC) estimates that investors lose billions of dollars each year due to fraudulent investment schemes.
Understanding variable annuities and income benefit riders
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Variable annuities are complex investment products that combine features of insurance and securities. They offer tax-deferred growth potential and the option to convert the account balance into a stream of income payments. Income benefit riders are optional features that can be added to a variable annuity contract, guaranteeing a minimum level of income for life, regardless of market performance.
However, these riders come with additional costs and may have specific requirements or limitations. FINRA Rule 2330 requires brokers to ensure that any recommended variable annuity is suitable for the client based on their investment objectives, risk tolerance, financial situation, and needs. Brokers must also provide a prospectus and other relevant information to help clients make informed decisions.
The importance of full disclosure for investors
Transparent communication and complete disclosure of all aspects of an investment product are crucial for investors to make well-informed decisions. When financial advisors fail to provide accurate or comprehensive information, investors may enter into transactions that do not align with their goals or risk tolerance.
Misrepresentation or omission of material facts can lead to significant financial losses for investors. In the case of variable annuities with income benefit riders, investors may not fully understand the costs, limitations, or potential risks associated with the product, leading to unexpected outcomes or difficulties in accessing their funds.
Protecting investors’ rights and recovering losses
Investors who suspect that their financial advisor has engaged in misconduct or failed to provide complete disclosure should be aware of the red flags and take action to protect their rights. Some warning signs include:
- Lack of clear communication about product features, costs, and risks
- Pressure to make quick investment decisions without adequate information
- Inconsistencies between verbal representations and written documents
- Unexplained or excessive fees and charges
Investors who have suffered losses due to financial advisor malpractice may be able to recover damages through FINRA arbitration. Haselkorn & Thibaut has over 50 years of combined experience in representing investors in such cases, with a 98% success rate in securing financial recoveries for their clients.
The firm operates on a “No Recovery, No Fee” basis, ensuring that clients can seek justice without upfront costs. Investors can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number, 1-888-628-5590.
As the investigation into Amanda Hale and Ameriprise Financial Services, LLC unfolds, investors should remain vigilant and proactive in protecting their financial interests. By working with experienced legal professionals, investors can hold financial advisors accountable for misconduct and work towards recovering any losses incurred due to misrepresentation or lack of full disclosure.
