Cory Weiser, a broker and investment advisor at MML Investors Services, LLC (CRD #10409) in Florida, is facing allegations of misrepresentation related to the sale of variable annuities in 2023. The complainants allege that Weiser omitted crucial information about the income benefits they would lose by terminating their existing variable annuities to purchase new products recommended by the advisor.
According to the disclosure on Weiser’s BrokerCheck profile, the customer dispute, filed on January 2, 2024, was denied by the firm. MML Investors Services, LLC found no basis to support the allegations, stating that the recommended investment solution met suitability guidelines at the time of sale and that the client acknowledged receipt of all required disclosures.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Cory Weiser and MML Investors Services, LLC in relation to these allegations. The firm encourages any clients who have suffered losses due to Weiser’s recommendations to contact them for a free consultation.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the Securities and Exchange Commission (SEC) reported that fraud by advisers cost clients more than $100 million in 2021 alone. It is crucial for investors to remain vigilant and thoroughly research their financial advisors to avoid falling victim to such misconduct.
Understanding Variable Annuities and FINRA Rules
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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 optional living benefits, such as guaranteed income for life. However, they also come with high fees, surrender charges, and potential market risks.
FINRA, the Financial Industry Regulatory Authority, has specific rules in place to protect investors from misrepresentation and unsuitable recommendations. FINRA Rule 2111 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.
Additionally, FINRA Rule 2330 establishes specific requirements for recommended purchases and exchanges of deferred variable annuities. Brokers must make reasonable efforts to obtain and consider information about the customer’s investment objectives, liquid net worth, risk tolerance, and other factors before recommending a variable annuity.
The Importance of Proper Disclosure for Investors
Clear and accurate disclosure of the features, risks, and costs associated with variable annuities is crucial for investors to make informed decisions. When a broker fails to provide complete information or misrepresents the potential benefits and drawbacks of an investment product, investors may suffer significant financial losses.
In the case of exchanging one variable annuity for another, investors must be made aware of any income benefits they may lose by terminating their existing contracts. Surrendering an annuity before the end of the surrender period can also result in substantial fees, which can significantly impact an investor’s returns.
Investors rely on the expertise and integrity of their financial advisors to guide them toward suitable investment solutions. When an advisor breaches this trust by providing incomplete or misleading information, it can have severe consequences for an investor’s financial well-being and retirement plans.
Red Flags and Recovering Losses Through FINRA Arbitration
Investors should be vigilant for red flags that may indicate financial advisor malpractice or misconduct. These warning signs include:
- Lack of transparency regarding fees, risks, and potential losses
- Pressure to make quick investment decisions without adequate time for consideration
- Recommendations that seem unsuitable based on the investor’s age, risk tolerance, or financial goals
- Unauthorized trades or excessive trading activity in the investor’s account
If an investor suspects misconduct or has suffered losses due to a financial advisor’s actions, they may be able to recover damages through FINRA arbitration. This process allows investors to seek compensation for losses caused by broker misconduct, negligence, or breach of fiduciary duty.
Haselkorn & Thibaut, with over 50 years of combined legal experience and a 98% success rate, has helped numerous investors recover their losses through FINRA arbitration. The firm operates on a contingency basis, meaning clients pay no fees unless a recovery is secured. Investors can contact Haselkorn & Thibaut at 1-888-628-5590 for a free consultation to discuss their legal options.
As the investigation into Cory Weiser and MML Investors Services, LLC unfolds, investors must remain proactive in protecting their rights and seeking justice for any potential misconduct. By working with experienced investment fraud attorneys, investors can navigate the complex legal landscape and work towards recovering their hard-earned savings.
