EQUITY SERVICES, INC.

Permitted to Resign

Without admitting or denying the findings, Reilly consented to the sanctions and to the entry of findings that he misrepresented on a telephone call to a financial services company that he was his customer. The findings stated that Reilly's customer wanted to surrender her variable annuity. Reilly placed three telephone calls to the annuity provider for the purpose of requesting a blank annuity surrender form. Reilly and the customer had a three-way telephone call with the annuity provider. Reilly and the customer, however, were unable to reach the correct department to request the form. Later that day, Reilly called the annuity provider again, without the customer. On the call between Reilly and the annuity provider, Reilly identified himself as the customer and gave the annuity provider the customer's date of birth, social security number, and account beneficiary information to convince the annuity provider that he was the customer. Reilly then asked the annuity provider to send a blank annuity surrender form to the customer's email address on file. The annuity provider ended the call and did not send the annuity surrender form. Reilly then called the annuity provider a third time, with the customer on the line, to request a blank annuity surrender form. The annuity provider alerted Reilly's member firm that Reilly had misrepresented during the second telephone call that he was the customer. The firm confronted Reilly about the phone call during its internal review. By denying that he had misrepresented to the annuity provider that he was his customer, Reilly failed to provide true and non-misleading information to his firm.

FINRA

Without admitting or denying the findings, Reilly consented to the sanctions and to the entry of findings that he misrepresented on a telephone call to a financial services company that he was his customer. The findings stated that Reilly's customer wanted to surrender her variable annuity. Reilly placed three telephone calls to the annuity provider for the purpose of requesting a blank annuity surrender form. Reilly and the customer had a three-way telephone call with the annuity provider. Reilly and the customer, however, were unable to reach the correct department to request the form. Later that day, Reilly called the annuity provider again, without the customer. On the call between Reilly and the annuity provider, Reilly identified himself as the customer and gave the annuity provider the customer's date of birth, social security number, and account beneficiary information to convince the annuity provider that he was the customer. Reilly then asked the annuity provider to send a blank annuity surrender form to the customer's email address on file. The annuity provider ended the call and did not send the annuity surrender form. Reilly then called the annuity provider a third time, with the customer on the line, to request a blank annuity surrender form. The annuity provider alerted Reilly's member firm that Reilly had misrepresented during the second telephone call that he was the customer. The firm confronted Reilly about the phone call during its internal review. By denying that he had misrepresented to the annuity provider that he was his customer, Reilly failed to provide true and non-misleading information to his firm.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

All Capacities

20 days

6/20/2023

7/9/2023

I WAS INTRODUCED TO THE CLIENT BY HER CPA IN MAY 2021. WE REVIEWED HER EXISTING PORTFOLIO AND COMPLETED A DETAILED RISK TOLERANCE QUESTIONNAIRE. IT WAS CLEAR THAT HER CURRENT PORTFOLIO, ESTABLISHED IN 2011, WAS NO LONGER SUITABLE. IT HAD BEEN 10 YEARS SINCE A RISK TOLERANCE PROFILE HAD BEEN UNDERTAKEN. DURING THAT PERIOD, SHE HAD BECOME A WIDOW, HAD BEEN IN A CAR ACCIDENT, IN WHICH HER SISTER, THE DRIVER, WAS KILLED. THIS ALL LED TO HER ADOPTING A MORE CONSERVATIVE RISK PROFILE. WITHIN TWO MONTHS, WE SUCCESSFULLY TRANSFERRED OVER 90% OF HER ASSETS, WHICH INCLUDED 1 OR HER 2 VARIABLE ANNUITIES (BOTH LISTED ON ADVISOR STATEMENT). THE SECOND ANNUITY WAS THE LAST REMAINING ASSET. FROM MAY TO AUGUST, EIGHT CALLS WERE PLACED TO THE ADVISOR AND INSURANCE COMPANY REGARDING THIS ANNUITY, IN WHICH WE ATTEMPTED TO REQUEST A BLANK SURRENDER FORM BE SENT TO THE CLIENT'S EMAIL ADDRESS, WHICH BOTH FIRMS HAD ON FILE. NEITHER FIRM WAS COMPLYING OR EVEN ATTEMPTING TO BE HELPFUL. ALMOST TWO YEARS AND SEVERAL ATTEMPTS LATER, THE CLIENT HAS STILL NOT SECURED THE NECESSARY FORM REQUIRED TO LIQUIDATE THE 2ND ANNUITY. SINCE 2021, HER ANNUITY HAS LOST 20% IN VALUE. FROM THE OUTSET, MY SOLE MOTIVATION WAS TO PROTECT MY CLIENT AND UPHOLD MY FIDUCIARY RESPONSIBILITY TOWARDS HER, WHICH INCLUDED INVESTING HER ASSETS IN A PORTFOLIO THAT WAS 100% SUITABLE TO HER CURRENT RISK PROFILE.

MML INVESTORS SERVICES, LLC

Permitted to Resign

Registered Representative was permitted to resign for failure to provide true and non-misleading information during an internal review.

I WAS INTRODUCED TO THE CLIENT BY HER CPA IN MAY 2021. WE REVIEWED HER EXISTING PORTFOLIO AND COMPLETED A DETAILED RISK TOLERANCE QUESTIONNAIRE. IT WAS CLEAR THAT HER CURRENT PORTFOLIO, ESTABLISHED IN 2011, WAS NO LONGER SUITABLE. IT HAD BEEN 10 YEARS SINCE A RISK TOLERANCE PROFILE HAD BEEN UNDERTAKEN. DURING THAT PERIOD, SHE HAD BECOME A WIDOW, HAD BEEN IN A CAR ACCIDENT, IN WHICH HER SISTER, THE DRIVER, WAS KILLED. THIS ALL LED TO HER ADOPTING A MORE CONSERVATIVE RISK PROFILE. WITHIN TWO MONTHS, WE SUCCESSFULLY TRANSFERRED OVER 90% OF HER ASSETS, WHICH INCLUDED 1 OR HER 2 VARIABLE ANNUITIES (BOTH LISTED ON ADVISOR STATEMENT). THE SECOND ANNUITY WAS THE LAST REMAINING ASSET. FROM MAY TO AUGUST, EIGHT CALLS WERE PLACED TO THE ADVISOR AND INSURANCE COMPANY REGARDING THIS ANNUITY, IN WHICH WE ATTEMPTED TO REQUEST A BLANK SURRENDER FORM BE SENT TO THE CLIENT'S EMAIL ADDRESS, WHICH BOTH FIRMS HAD ON FILE. NEITHER FIRM WAS COMPLYING OR EVEN ATTEMPTING TO BE HELPFUL. ALMOST TWO YEARS AND SEVERAL ATTEMPTS LATER, THE CLIENT HAS STILL NOT SECURED THE NECESSARY FORM REQUIRED TO LIQUIDATE THE 2ND ANNUITY. SINCE 2021, HER ANNUITY HAS LOST 20% IN VALUE. FROM THE OUTSET, MY SOLE MOTIVATION WAS TO PROTECT MY CLIENT AND UPHOLD MY FIDUCIARY RESPONSIBILITY TOWARDS HER, WHICH INCLUDED INVESTING HER ASSETS IN A PORTFOLIO THAT WAS 100% SUITABLE TO HER CURRENT RISK PROFILE.