Merrill Lynch financial advisor Teena Bourque (CRD# 2687982) is currently facing a pending customer dispute, according to her FINRA BrokerCheck report. The client alleges misrepresentation of fee structures related to variable annuities from June 2, 2023, to January 31, 2024. Bourque has been registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) in Maine since April 3, 2014, and is licensed as both a broker and an investment advisor.
As of February 5, 2024, the dispute remains unresolved, and the damage amount requested by the client has 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 Teena Bourque and Merrill Lynch regarding this matter. Investors who have suffered losses due to potential misconduct by Bourque or Merrill Lynch are encouraged to contact Haselkorn & Thibaut for a free consultation.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg report, investment fraud cost Americans over $1.6 billion in 2020 alone. It is crucial for investors to be aware of the risks and to thoroughly research their financial advisors and the products they recommend.
Understanding the allegations and FINRA rules
Table of Contents
The client’s allegations center around the misrepresentation of fee structures related to variable annuities. Variable annuities are complex investment products that combine features of insurance and securities, offering tax-deferred growth and the option to convert the account into a stream of periodic payments. However, these products often come with high fees and surrender charges, which can significantly impact an investor’s returns.
FINRA Rule 2111, known as the “Suitability Rule,” requires financial advisors to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer based on their investment profile. This profile includes factors such as the customer’s age, financial situation, investment objectives, and risk tolerance. Misrepresenting fee structures or failing to fully disclose the costs associated with a variable annuity could violate this rule.
The importance for investors
This case highlights the significance of transparency and accurate disclosure in the financial advisory industry. Investors rely on their financial advisors to provide clear, honest, and complete information about the products they recommend and the associated costs. Misrepresentation of fees can lead to investors making decisions based on inaccurate information, potentially resulting in unexpected expenses and suboptimal investment outcomes.
Furthermore, this case underscores the complex nature of variable annuities and the need for investors to thoroughly understand these products before investing. Investors should carefully review the prospectus, ask questions about fees and surrender charges, and consider seeking a second opinion from a trusted financial professional before committing to a variable annuity.
Recognizing red flags and seeking help
Investors should be vigilant for red flags that may indicate financial advisor malpractice, such as:
- Lack of transparency regarding fees and costs
- Pressure to make quick investment decisions
- Recommendations that seem inconsistent with the investor’s goals and risk tolerance
- Difficulty obtaining clear answers to questions about investments or strategies
If an investor suspects misconduct or has suffered losses due to a financial advisor’s actions, they should consider pursuing recovery through FINRA arbitration. Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover losses through this process. The firm operates on a “No Recovery, No Fee” basis, ensuring that clients can seek justice without upfront costs.
Investors who have worked with Teena Bourque or Merrill Lynch and believe they may have been affected by misconduct are encouraged to contact Haselkorn & Thibaut at 1-888-885-7162 for a free consultation. The firm’s experienced attorneys will review the case and provide guidance on the best course of action for pursuing recovery.
