The Securities and Exchange Commission has charged four former Atlanta, Georgia brokers with variable annuity fraud. Specifically, the Commission claims that they fraudulently persuaded federal employees to roll over holdings from their federal Thrift Savings Plan retirement accounts into variable annuities with more expensive fees.
The alleged actions occurred roughly from March 2012 to November 2014, when the advisors–Christoper Laws, Jonathan Cooke, Danny Hood and Brandon Long–were registered representatives of LPL Financial and affiliated with Federal Employee Benefits Counselors.
The Commission alleges that the brokers targeted federal employees with substantial funds in the Thrift Savings Plan and were nearing retirement through the FEBC. It further claims the advisors misled the investors regarding major details about the variable annuities they solicited, including the associated fees and guaranteed investment returns. Additionally, the SEC alleges that the advisors created the misleading impression that they were somehow affiliated with or approved by the federal government.
The SEC claims the advisors sold roughly 200 variable annuities with a total face value of about $40 million to federal employees, who used rollover funds from their plans to fund the purchases. The advisors received a total of about $1.7 million in commissions. The SEC is seeking disgorgement of the illicit profits in addition to interest, penalties, and permanent injunctions.
Have you suffered financial losses due to variable annuity fraud or other misconduct of a broker? We can help you. The attorneys at The Frankowski Firm are dedicated to representing victims of securities broker fraud and negligence throughout the United States. To talk with one of our lawyers, please call us today at 888.741.7503 or fill out this contact form.