Gary Barth, a broker and investment advisor with Ameritas Investment Company, LLC, has been named in a recent customer dispute, according to disclosures on his FINRA BrokerCheck report. The complaint, filed on February 8, 2024, alleges that the complainant requested Ameritas to add a death benefit rider to their variable annuity at no additional cost to the owner. The dispute was ultimately denied, but it raises concerns about the potential for misconduct in the sale of complex financial products like variable annuities.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, the U.S. Securities and Exchange Commission (SEC) charged five individuals in an international insider trading scheme that generated more than $7 million in illicit profits. This highlights the importance of working with reputable advisors and being vigilant for potential misconduct.
Understanding Variable Annuities and FINRA Rules
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Variable annuities are complex investment vehicles that combine features of insurance and securities products. They offer tax-deferred growth potential and the option to convert the account balance into a stream of periodic payments. However, they also come with significant risks, high fees, and potential surrender charges.
FINRA Rule 2330 governs the sale of variable annuities, requiring brokers to ensure that recommendations are suitable for the customer’s investment objectives, risk tolerance, and financial situation. Brokers must also disclose material features, risks, and conflicts of interest associated with the product.
The Importance of Proper Disclosure for Investors
Proper disclosure is crucial for investors to make informed decisions about their investments. When brokers fail to provide accurate and complete information about the costs, risks, and limitations of variable annuities, investors may end up with products that do not align with their financial goals or risk tolerance.
The alleged request to add a death benefit rider at no cost raises questions about whether the full costs and implications of the annuity were properly disclosed. Investors should be aware of all fees and potential charges associated with their investments, as these can significantly impact long-term returns.
Recognizing Red Flags and Seeking Help
Investors should be vigilant for red flags that may indicate financial advisor misconduct or negligence. These include:
- Pressure to make quick investment decisions
- Lack of clear explanations about product features, risks, and costs
- Recommendations that seem inconsistent with the investor’s goals or risk tolerance
- Difficulty accessing account information or communicating with the advisor
If an investor suspects misconduct or suffers losses due to improper recommendations, they may be able to recover damages through FINRA arbitration. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Gary Barth and Ameritas Investment Company, LLC.
With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. They offer free consultations and operate on a “No Recovery, No Fee” basis. Investors can contact them toll-free at 1-888-885-7162 for more information.
As the investigation into Gary Barth and Ameritas Investment Company, LLC unfolds, it serves as a reminder for investors to thoroughly research their investments, ask questions, and seek help if they suspect wrongdoing. By staying informed and working with experienced professionals, investors can better protect their financial futures.
