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advisor fraud

Discussion in 'Commercial Transactions & Investments' started by oscar, Feb 7, 2017.

  1. oscar

    oscar Law Topic Starter New Member

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    A financial advisor visited the retirement community where my family resides.

    After the presentation, I met with the advisor and informed her that I currently had fixed annuity and that I wanted to continue with a fixed annuity to ensure that my youngest son who is twelve years would have money for his college education because I am of advanced age and will not be able to support him except for this savings.

    The advisor assured me and my wife that she would continue with a product similar to the fixed annuity that I currently had.

    I have since learned that the annuity I purchased was not equitable to the one that I transferred from NY life. The product she purchased from AIG is losing value, yet the advisor purchased it without my knowledge or consent.

    Additionally, I have learned that I am paying fees approaching 4% of the account value for a product that was losing value at purchase and subsequent thereto.

    I have contacted AIG, the company from which the product was purchased. Their response is that I signed the signature page of the application/contract, and the matter was resolved, thus refusing to refund my money.

    It is my position that the advisor cunningly produced the signature page for me to sign without presenting the application/contract in its entirety.

    It appears that the advisor has had business problems because she again provided me with documents to sign without any explanation as to her change in brokers or what she was requesting my signature.

    I believe I was defrauded in the following aspects of this transaction:

    The advisor planned an event at a location where elderly persons and military veterans live. It appears the advisor had a mindset that such persons would be easy prey and gullible to her unscrupulous tactics and that she would earn additional fees, while the clients whom trusted her to assist them financially would lose their savings and not understand why. In my opinion, the advisor performed this smoke and mirrors act after being welcomed to our community clubhouse. During her presentation the advisor stated that she would fully explain her business and the substance of what was being offered. She further stated that she would work in the best interest for those who trusted her and that she would not and had not exposed her clients to risky ventures and that the products provided by AIG were backed by the federal government due to the federal government’s recent bailout of AIG.

    I believe the financial advisor was only interested in receiving commission for the product she sold me and not interested in providing competent service for which she was paid. Instead, she saw me someone who was undeserving of her knowledge or skills and abilities, and someone she could lie to and scam without conscious.

    When I inquired about the substantial losses to my account and why my directives were ignored, the advisor responded that she had purchased a product that would provide me with an income of $1,000.00 per month. I then said that I would obtain more than that amount in an account that bears no interest. The advisor would not explain her rationale for involving me in a product that was a variable and has always lost value. She failed to provide any reasonable explanation.

    As my financial advisor, I believe that I was owed the duty not be defrauded by the presentation of contract documents that were not presented in their entirety for execution. I feel the advisor owes a fiduciary duty to not purposely purchase products provided by AIG without a full explanation of the risks involved. It appears that the advisor knew or should, have known to not invest in high risk transactions for elderly military veterans that provide no protection for the veteran’s spouse or minor children.

    I surmise that the variable annuity purchased by the advisor without my knowledge has lost value from its inception until present and that the advisor was compensated for placing unsuspecting seniors whom she could easily deceive and then purchase products that she and AIG knew were losing value at the time of purchase, and had lost value in the past and in no way was suitable for senior citizens. The advisor and AIG knew this product would continue losing money until the investor expired without the benefit of any gains for the investor, the investor’s spouse, beneficiaries, or minor children.

    This product provided nothing more than the promise that the elderly, senior citizens and retired veterans would receive a set amount per month for life. Based on life span actuarial statistical tables, an advanced aged investor would never recoup their initial investment and certainly obtain no benefit as to any interest or gains.

    Please review and advise me as to whether your company can assist me in providing legal analysis and information as to the possible criminal and civil penalties available in a situation such as this.

    Please respond at your earliest convenience

    Sincerely Yours,
  2. ElleMD

    ElleMD Well-Known Member

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    Financial advisors, for the time being, have a fiduciary duty, it isn't clear if that was violated or not. It is never a good idea to sign a contract you do not understand and if you didn't think this person was giving you the answers in a way you could understand, it was a bad move to sign on with her. You can speak with an attorney to see if there is any recourse, but no financial advisor can guarantee an investment will perform as you would like.
  3. adjusterjack

    adjusterjack Super Moderator

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    People who sell annuities are licensed and regulated by the US Securities and Exchange Commission and may also be licensed by your state's insurance department.

    File written complaints with both.

    But I suspect that the bottom line is going to be that you should have read and understood the application and demanded copies of the contract up front.
  4. army judge

    army judge Super Moderator

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    You can stop the blending by having the money moved to another annuity of your choice.
    I suggest you continue seeking any legal remedy against the scammer, masquerading as a financial advisor, while having your money returned to its previous protection.
    Yes, it'll cost you a fee, but it'll save the majority of your investment.

    In the future, don't attend any affairs where you don't know the presenter.

    In essence, you're a better shepherd of your financial sheep than an unknown financial wolf disguised as a shepherd.

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