Michael Antalek, a broker associated with Hornor, Townsend & Kent, LLC, is currently facing a pending customer dispute, according to his FINRA BrokerCheck report. The complaint, filed on January 30, 2024, alleges that Antalek failed to fully explain the premium requirements for a variable life insurance policy. As a result, the customer is requesting the cancellation of the policy.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a recent study by the U.S. Securities and Exchange Commission, fraudulent investment schemes cost investors billions of dollars each year, with many victims being elderly or financially inexperienced individuals.
Understanding variable life insurance and FINRA Rule 2330
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Variable life insurance is a type of permanent life insurance that combines death benefit coverage with an investment component. The policyholder’s premiums are invested in various sub-accounts, similar to mutual funds, and the policy’s cash value can fluctuate based on the performance of these investments.
FINRA Rule 2330 governs the recommendation and sale of variable life insurance policies. The rule requires brokers to have a reasonable basis for believing that the policy is suitable for the customer based on their financial situation, investment objectives, and risk tolerance. Additionally, brokers must provide customers with a prospectus and other relevant information to help them make informed decisions.
The importance of full disclosure in variable life insurance sales
Proper disclosure of premium requirements is crucial when selling variable life insurance policies. Customers need to understand the long-term financial commitment and potential risks associated with these products. Failure to fully explain premium obligations can lead to unexpected financial burdens and dissatisfaction with the policy.
When brokers do not adhere to FINRA rules and industry best practices, investors may find themselves with unsuitable policies that do not align with their financial goals. This can result in significant losses and hardship for the policyholder and their beneficiaries.
Protecting investors from financial advisor malpractice
Investors should be aware of red flags that may indicate financial advisor malpractice, such as:
- Lack of transparency about product features, risks, and costs
- Recommending products that do not align with the investor’s risk tolerance or financial objectives
- Failing to provide necessary documentation, such as prospectuses or policy illustrations
If an investor believes they have been misled or sold an unsuitable variable life insurance policy, they may be able to recover losses through FINRA arbitration. This process allows investors to seek compensation for damages caused by broker misconduct or negligence.
Haselkorn & Thibaut: Advocating for investors’ rights
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Michael Antalek and Hornor, Townsend & Kent, LLC. With over 50 years of combined experience and a 98% success rate, the firm has a proven track record of helping investors recover losses through FINRA arbitration.
Investors who have suffered losses due to the actions of Michael Antalek or any other financial advisor are encouraged to contact Haselkorn & Thibaut for a free consultation. The firm operates on a contingency basis, meaning clients pay no fees unless a recovery is secured. To discuss your case with an experienced investment fraud attorney, call 1-888-885-7162 .
