CHICAGO, June 8, 2012 (GLOBE NEWSWIRE) -- Stoltmann Law Offices announces it has filed a FINRA arbitration claim on behalf of a former Securities America client who sustained losses because of investments life insurance twisting and churning.
According to the Statement of Claim, the Securities America client, an 81 year old resident of Peoria, Illinois, was sold various annuities and life insurance policies that were held for a short period of time, and then liquidated. The proceeds were then rolled into other policies and annuity contracts. In most of these transactions, the elderly Claimant was charged surrender charges and fees. For example the Statement of Claim details a Lincoln Annuity bought on August 20, 2003 and then surrendered two years later. The funds were then rolled into a Fidelity Annuity which was held for 15 months and then sold. The proceeds were then rolled into a Hancock Annuity on the same day. The annuity was held for a little over two years and then sold with the proceeds rolled into a Jackson Annuity. The advisor, John Edward Watson, was discharged from Securities America in February of 2011. According to his CRD, he was discharged for "providing inaccurate information on client disclosure documents."
According to Chicago attorney Andrew Stoltmann, "Life insurance twisting and annuity churning violates the duties and responsibilities a broker has to his or her client. In cases where this activity occurs, some, or all of the clients investment losses and fees and commissions can be recovered. To learn about the FINRA loss recovery process, please contact us in Chicago for a no obligation consultation."