In a recent development that has sent shockwaves through the investment community, Bankers Life and Casualty Company (BLC), an affiliated insurance company of Bankers Life Securities, Inc. (BLS), has been accused of taking advantage of a client in the sale of multiple Premium Bonus Index Annuities (PBIA) between February 2021 and October 2022. The allegation, which came in the form of a written complaint from the State of Iowa Insurance Division, has raised serious concerns about the conduct of Cody Moran, the financial representative involved in the transactions.
The gravity of the allegation
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According to the complaint, the client was unaware of the 10-year surrender schedule and the penalties associated with early withdrawals when purchasing the annuities. Furthermore, the client alleged that due to health reasons, their spouse should not have signed the policies. These allegations, if proven true, could constitute a severe breach of trust and fiduciary duty on the part of the financial advisor and the company. Forbes reports that bad financial advice can have devastating consequences for investors, leading to significant losses and shattered dreams of financial security.
Impact on investors
The consequences of such misconduct can be far-reaching, affecting not only the client in question but also undermining the confidence of investors in the broader financial services industry. When financial advisors fail to fully disclose the terms and conditions of investment products, particularly complex instruments like annuities, they expose their clients to unnecessary risks and potential financial losses. Investment fraud and misconduct can have a lasting impact on victims, both financially and emotionally.
The role of FINRA
The Financial Industry Regulatory Authority (FINRA) plays a crucial role in protecting investors and maintaining the integrity of the financial markets. FINRA Rule 2111 requires that financial advisors 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.
Suitability and disclosure
In the case of Cody Moran and Bankers Life Securities, Inc., the suitability of the annuity recommendations and the adequacy of the disclosures made to the client are at the heart of the matter. If the financial advisor failed to properly assess the client’s needs and risk profile or did not fully explain the terms and conditions of the annuities, including the surrender schedule and early withdrawal penalties, they may have violated FINRA rules and breached their fiduciary duty to the client.
Protecting investors’ rights
Investors who believe they have been misled or taken advantage of by their financial advisors have the right to seek recourse and recover their losses. FINRA arbitration provides a forum for investors to resolve disputes with their brokers or brokerage firms, and experienced investment fraud attorneys can help navigate this process.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Cody Moran and Bankers Life Securities, Inc. The firm, with over 50 years of combined experience and a 98% success rate, has a proven track record of helping investors recover losses through FINRA arbitration.
Red flags and seeking help
Investors should be vigilant for red flags that may indicate financial advisor malpractice, such as:
- Lack of transparency about investment products and their risks
- Pressure to make quick investment decisions
- Recommendations that seem unsuitable based on the investor’s profile and goals
If you suspect that you have been a victim of investment fraud or misconduct, it is crucial to seek help from qualified professionals. Haselkorn & Thibaut offers free consultations to investors who may have claims against their financial advisors or brokerage firms. With their “No Recovery, No Fee” policy, investors can pursue justice without worrying about upfront legal costs.
To learn more about your rights as an investor and to discuss your potential claim, contact Haselkorn & Thibaut at their toll-free number: 1-888-885-7162 .
