Are you worried about your investments with Securian Financial Services (CRD# 15296)? Our research shows this Minnesota-based insurance firm has had a significant run-in with regulators since its foundation in 1985.
This blog aims to provide an easy-to-understand guide to the regulatory issues, major lawsuits, and frequent customer complaints faced by Securian Financial Services.
Haselkorn & Thibaut is currently investigating Securian and its investment advisers and financial advisors for bad sales practices, supervisory issues, and inappropriate investments.
“Can I recover losses from Securian Financial” A question we are asked frequently. If you’ve found your pockets lighter due to the actions (or lack thereof) of Securian Financial Services and its financial advisors, the answer is YES!
But ah, there’s a catch! You might have unwittingly signed away your right to bring them to court, instead agreeing to settle disputes through FINRA arbitration proceedings. Call us today at 1-800-856-3352 to get a free case evaluation and understand your loss and your recovery.
Let’s dive into the murky waters of finance industry infringements.
Key Takeaways
Table of Contents
- Securian Financial Services has faced numerous complaints, fines, and lawsuits since its establishment in 1985.
- The complaints revolve around issues such as fraudulent behavior, failure to supervise financial advisors, and misleading statements.
- There have been notable lawsuits filed against the company, including a fraud case involving James Patrick McCloskey.
- The company has also faced fines for undisclosed revenue sharing and conflicts of interest.
Overview of Securian Financial Services
Securian Financial Services is a comprehensive financial services company, serving individuals, families, and businesses with insurance products and retirement and investment advice. Their mission is to provide clients and families with the necessary tools to build and create a secure future and meet their financial and life goals.
However, throughout its history, Securian has faced numerous complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, employees as well as individual investors.
Regulatory Issues and Complaints
Securian Financial Services has faced various regulatory issues and customer complaints, highlighting potential misconduct and negligence within the company.
A brief overview of regulatory problems
Securian Financial Services faces many issues. These problems come from rules they must follow, known as regulation problems. From the list of facts, we learn about James Patrick McCloskey who worked for them.
He faces claims that he did not tell the truth about life insurance products.
Mistakes were also made in 2012 with another customer complaint against McCloskey. This person said there were false words about penalties on an insurance contract. Misuse of these important documents can lead to big issues later on and show deep concerns within a company like Securian Financial Services.
Common complaints from Securian Financial Services customers
Securian Financial Services has had some problems. Here are a few things customers have said:
- Misleading statements: Some say that the firm made false claims about their products.
- Bad investment advice: A few customers blame Securian for the loss of money due to bad advice.
- Broker negligence: Some people accuse the company of not taking care of their investments.
- Unsuitable trading: There are claims that Securian has made risky trades that did not fit the customer’s needs.
- Breach of Fiduciary Duty: The company failed to act in the best interest of its clients, according to some reports.
- Fraud: Customers have claimed they were tricked into buying certain products or services.
- Damages: Some people say they lost money due to Securian’s actions.
Notable Lawsuits and Fines Against Securian Financial Services
Securian Financial Services has faced several notable lawsuits, criminal proceedings and fines due to misconduct.
Case of fraud lawsuit
James Patrick McCloskey got his family into trouble. He works as a stockbroker for Securian Financial Services. A customer did not like what he did and made a civil action against him in 2017.
The case was about wrong info given on insurance products the customer bought from him. The angry client wants $397,237.00 for the harm done. This is not his first problem! In 2012, another upset customer sought damages!
Instances of fines due to misconduct
Securian Financial Services has faced several fines due to misconduct. These instances include:
- One notable disciplinary proceeding led by FINRA resulted in a censure and a fine of $165,000 for undisclosed revenue sharing and conflicts of interest.
- The firm has also been subject to additional regulatory disciplinary actions and investigations by FINRA, the SEC, NASAA, and state securities regulators.
- Independent broker-dealers like Securian Financial Services have been criticized for their lax supervisory practices, which put investors at risk of unauthorized sales of securities.
- Haselkorn & Thibaut has conducted investigations into the conduct of multiple current and former advisors at Securian Financial Services.
The Impact of Complaints and Lawsuits on Securian Financial Services
Securian Financial Services has faced a significant impact as a result of the complaints and lawsuits filed against them. These legal issues have not only damaged their personal life and reputation but also caused financial losses for the company.
The numerous customer complaints and regulatory actions have raised concerns among potential investors, resulting in a loss of investor trust in the firm’s ability to manage risk and to provide reliable financial services.
Additionally, the fines imposed on Securian Financial Services have significantly affected their business and their bottom line moving forward, draining the business of resources that could have been used for business operations or being committed to improving customer experiences.
Overall, these complaints and lawsuits have had a detrimental impact on Securian Financial Services’ overall business performance and credibility in the industry.
Example of Disclosures
Disclosure Event 1
- Policy Holder: SECURIAN FINANCIAL SERVICES, INC.
- Bonding Company Name: FEDERAL INSURANCE COMPANY
- Disposition: Payout
- Disposition Date: 09/25/2008
- Payout Details: Recovered a total of $413,257.85 from the bonding company.
- Firm Statement: Former registered representative, Fred L. May, misappropriated funds from a trust account for which he acted as an investment advisor representative. May transferred approximately $473,000 in funds to a bank account under his control by forging the customer’s signature on transfer requests without the customer providing May authority to sign their name or effect the transfers.
Disclosure Event 2
- Policy Holder: SECURIAN FINANCIAL SERVICES, INC.
- Bonding Company Name: CONTINENTAL CASUALTY COMPANY
- Disposition: Payout
- Disposition Date: 12/15/2003
- Payout Details: Received payout of $1,472,944.98
- Firm Statement: Conversion of customer funds involving non-registered investments by a former registered representative.
Disclosure Event 3
- Policy Holder: ASCEND FINANCIAL SERVICES, INC.
- Bonding Company Name: WAUSAU AND CHUBB
- Disposition: Denied
- Disposition Date: 09/09/1997
- Firm Statement: Conversion of funds involving fixed and variable life insurance policies by a registered representative, Richard Berlin, in the amount of approximately $159,000.
Disclosure Event 4
- Policy Holder: ASCEND FINANCIAL SERVICES, INC.
- Bonding Company Name: SEABURY & SMITH, WAUSAU
- Disposition: Payout
- Disposition Date: 05/02/1997
- Payout Details: Recovered $195,283.65 on 05/02/1997 from two bonding companies.
- Firm Statement: Conversion of customer funds involving mutual fund accounts by a registered representative, Timothy R. Strong, in the amount of $214,000
How to Seek Legal Advice if Affected by Securian Financial Services Misconduct
If you have been affected by Securian Financial Services misconduct, here are steps to seek a financial professional legal advice:
- Contact the Law Offices of Haselkorn & Thiabut (InvestmentFraudLawyers.com).
- Schedule a free consultation with our experienced investment fraud attorneys.
- Discuss your case and provide details about the misconduct.
- Our lawyers will evaluate your claim and determine if you have a case against Securian Financial Services.
- If your claim is viable, our attorneys will guide you through the legal process and represent you in FINRA arbitration proceedings.
- Haselkorn & Thibaut has extensive experience in winning cases against Securian Financial Services and can help you recover your financial losses.
Conclusion
In conclusion, Securian Financial Services has faced numerous complaints, fines, and lawsuits due to misconduct and negligence. Investors who have experienced financial losses can seek legal and financial professional advice from experts like Haselkorn & Thibaut.
It is important to take action if you believe you have a claim against Securian Financial Services in order to protect your rights and potentially recover damages. Don’t hesitate to reach out for a free consultation with an experienced investment fraud lawyer who can assist you through FINRA arbitration proceedings.
FAQs
1. What is the Financial Industry Regulatory Authority (FINRA)?
FINRA is a group that makes sure financial firms and their workers follow rules.
2. What does Securities Arbitration mean?
Securities Arbitration is when people solve a personal money or debt fight without going to court.
3. Who are some of the people involved in Securian Financial Lawsuits?
People like Masood Husain Azad, Gary Wayne Hammond, and Norman Stanley Batansky have been part of Securian Financial lawsuits.
4. Why has LPL Financial LLC faced complaints and fines?
LPL Financial LLC faced issues due to worker misconduct causing losses for investors and breaking securities transactions rules.
5. Where have these cases taken place in the U.S?
These security issues have come from various cities such as Charlotte North Carolina, Lady Lake Florida, Bridgewater New Jersey, Greenwich Connecticut, Hailey Idaho, Indianapolis Indiana and more.
6. What happens if my Investment Advisors at Securian cause investment losses?
You can make a regulatory complaint against your own investment adviser, advisor or firm if they lead you to lose money on your investments through misrepresentations or other bad actions.
8. What is Securian Financial Services Inc?
Securian Financial Services Inc is a Minnesota-based mutual holding company. They offer family-focused services and many other investment products and retirement plan solutions too.
9. What types of services does Securian provide?
Securian provides financial planning firms and businesses with retirement plan and life and advisory firm services. They also handle securities and have an array portfolio of investment options for institutional investors.
10. How much money does Securian manage?
Securian manages for clients with several billion dollars of assets under the control of their management in their role as a national financial and investment adviser and risk advisory.
11. Does Securian focus on certain kinds of investments?
Yes, besides other investment and retirement options, they specialize in investing and retirement and in group variable annuity which is one of their various investment and retirement solutions.
