NYLife Financial advisor Jeffrey Scott Anderson (CRD # 5993214) of Bloomington, IL, has been barred by the Financial Industry Regulatory Authority (FINRA) on the 2nd of August. The barring follows allegations of theft of $26,600 from an elderly customer of NY Life.
According to the information made available by FINRA, and publicly accessible, Anderson appears to have convinced the customer to write out checks totaling $26,600 to him, personally. The five checks were apparently meant for the purchase of investments and insurance products for the customer. These transactions happened between October and December 2019 and came to FINRA’s attention when Anderson’s member firm filed a U5, disclosing two customer complaints against him. This has been stated in the Letter of Acceptance and Waiver issued by FINRA.
Anderson cashed the checks in his account, as they were made out to him. After that, FINRA states that “rather than using the funds to purchase investments or insurance, however, Anderson deposited the customer’s funds into his personal bank account and used the funds to pay for personal expenses, including household expenses, food, gas, and car payments.”
If you or someone you know has a Jeff Anderson, please contact our attorneys at 1-800-856-3352 for a free consultation and options to recover your losses.
Jeff Anderson’s history as an advisor
Based on data available with FINRA, from 24th April 2014 to 13th March 2020, Anderson was associated with NYLIFE SECURITIES LLC (CRD#:5167), BLOOMINGTON, IL, after which he moved to PRUCO Securities, LLC. (CRD#:5685), Bloomington, IL. His tenure at Pruco lasted barely three months, from 21st September 2020 to 3rd December 2020, ending in a discharge for the alleged misappropriation of customer funds.
Even at NYLife, where he had a longer tenure, his business practices had come under scrutiny. Though a review of his business practices “raised a number of concerns regarding the quality of his business, including repeat replacement and suitability concerns and undisclosed customer complaints” he was permitted to resign from NYLife and leave.
According to his broker record, 5 complaints have been filed against Anderson since 2018 for various issues including, among others, variable annuity switching. All 5 are reported to have been settled.
Responsibility of brokerage firm
If an investor incurs losses on account of an infraction or fraud or inappropriate conduct of the advisor, the brokerage firm they are representing may also be liable to the investor. Brokerage firms have the responsibility of supervising advisors registered with them and monitoring their business activities. Failure to do so opens them up for investor claims and losses.
The customer at the receiving end of this fraud has been paid $26,579.75 as reimbursement for the losses she incurred, by the firm.
What should impacted investors do?
The White Law Group, LLC, a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois, is investigating potential securities claims involving Jeffrey Scott Anderson and the liability his employers may have for failure to properly supervise his activities.
Investors who have worked with Anderson, or otherwise fear being at the receiving end of similar broker malpractice, can approach securities attorneys at The White Law Group for a free consultation. You can reach them on (888) 637-5510.