Power of Attorney for client alleges financial advisor did not inform client of the penalties to withdraw monies from an Annuity prior to its maturity. (7/21/2014-6/28/2018)

$17,000.00

The Firm assessed the complaint and made the decision to deny the client's allegations.

NEW YORK CLIENT CLAIMED THAT A LITTLE OVER A YEAR AGO, SHE HAD A CD THAT WAS MATURING AND THAT SHE SPOKE TO THE FA ABOUT OTHER INVESTMENT OPTIONS FOR THE $75,000. THE CLIENT FURTHER CLAIMED THAT RATES ON CDS WERE LOW AND THE ECONOMY IN GENERAL WAS POOR. THE CLIENT CLAIMED THAT THE FA SUGGESTED A PACIFIC LIFE INNOVATIONS SELECT VARIABLE ANNUITY (THE PACIFIC LIFE ANNUITY). THE CLIENT CLAIMED THAT THE WAY SHE UNDERSTOOD THE INVESTMENT WAS THAT THE $75,000 WOULD NEVER GO DOWN AND THAT SHE WAS GUARANTEED 5% INTEREST; FURTHER, THAT AFTER THE FIRST YEAR SHE WOULD GET 6% OR $4,500. THE CLIENT MADE A PREMIUM PAYMENT OF $75,000 FOR THE ANNUITY AND THE ANNUITY CONTRACT WAS ISSUED ON NOVEMBER 21, 2007. THE CLIENT HAS TAKEN WITHDRAWALS FROM THE ANNUITY IN THE AGGREGATE AMOUNT OF $14,500. SINCE ONE OF THE WITHDRAWALS OCCURRED BEFORE THE FIRST ANNIVERSARY DATE OF THE CONTRACT THE CLIENT DID NOT RECEIVE THE INTEREST CREDIT OF 6% OR $4,500. THE CLIENT SEEKS TO GET HER PRINCIPAL BACK PLUS THE $4,500 FOR THE FIRST YEAR INTEREST CREDIT, LESS THE AMOUNT OF THE WITHDRAWALS THAT SHE HAS TAKEN. THE CURRENT CONTRACT VALUE FOR THE ANNUITY IS ESTIMATED TO BE $47,208.34; THE CURRENT SURRENDER VALUE FOR THE ANNUITY IS ESTIMATED TO BE $43,459.06. DAMAGES ARE REASONABLY CALCULATED TO BE $21,541.

$21,541.00

THE FIRM DENIED THE COMPLAINT VIA A LETTER TO THE CLIENT DATED APRIL 9, 2009. BASED UPON THE TOTALITY OF THE FIRM'S REVIEW, IT COULD NOT BE CONCLUDED THAT THE PACIFIC LIFE ANNUITY WAS AN UNSUITABLE INVESTMENT FOR THE CLIENT BASED UPON THE CLIENT'S OVERALL INVESTOR PROFILE, HER INVESTMENT OBJECTIVES, HER RISK TOLERANCE AND HER INVESTMENT TIME HORIZON. THE CLIENT WAS NOT TOLD THAT HER PRINCIPAL WOULD NEVER GO DOWN; THAT SHE WAS GUARANTEED TO EARN 5.0% INTEREST; AND THAT SHE WOULD GET 6.0% INTEREST AFTER THE FIRST YEAR. THE CLIENT SIGNED A VARIABLE ANNUITY DISCLOSURE STATEMENT WHEN SHE PURCHASED THE ANNUITY. THE VARIABLE ANNUITY DISCLOSURE STATEMENT CONTAINED IMPORTANT INFORMATION ABOUT THE ANNUITY INCLUDING THE RISKS ASSOCIATED WITH ANNUITY INVESTMENTS. THE CLIENT RECEIVED A PROSPECTUS PRIOR TO HER PURCHASE OF THE ANNUITY AND AN ANNUITY CONTRACT SUBSEQUENT TO THE ANNUITY PURCHASE.

CONNECTICUT CLIENT CLAIMS THAT HE WAS PROVIDED WITH INACCURATE INFORMATION ABOUT HIS VARIABLE ANNUITY'S SURRENDER CHARGES AND BONUS CREDITS. CLIENT INVESTED HIS FUNDS IN APRIL 2003. CLIENT SEEKS THE RETURN OF HIS PRINCIPAL WITHOUT ANY SURRENDER FEES, DAMAGES WHICH AMOUNT TO APPROXIMATELY $6,100.

$6,100.00

CLAIM DENIED. CLIENT RECEIVED FULL AND ACCURATE DISCLOSURE CONCERNING THE BENEFITS, RISKS AND OTHER LIMITATIONS CONCERNING HIS INVESTMENT.

CUSTOMER ALLEGES INVESTMENTS NOT APPROPRIATE FOR A PERSON 76 YEARS OF AGE.

$7,760.00

INVESTMENTS AND INSURANCE WERE APPROPRIATE FOR THIS CUSTOMER