Claimants allege that in 2017, the now deceased client's advisor improperly referred her to an attorney for the possibility of selling annuities that she received from a personal injury litigation in 2011. As a result of the referral, [REDACTED] entered into a fee agreement with the attorney to sell her annuities with a 25% contingent fee. Claimants allege that this was not in the best interest of the client as the advisor hoped to benefit from liquidating the annuities because the fee agreement provided that the funds be sent directly to him. As a result of the annuity sale, [REDACTED]'s net proceeds were reduced by the $437,500 fee.

$437,500.00

$100,000.00

Bankruptcy

Discharged

$82,500.00

Civil

The trustee alleged the advisor didn't disclose terms and conditions of a REIT resulting in breach of fiduciary duty, fraud, fraudulent concealment, breach of contract, negligence and requests for punitive damages.

$17,500.00

FINRA

FINRA RULE 2010, NASD RULE 1017: THE MEMBER FIRM, ACTING THROUGH AGUILAR, ITS PRESIDENT, FAILED TO FILE AN APPLICATION FOR APPROVAL OF THE CHANGE OF OWNERSHIP WITH FINRA AT LEAST 30 DAYS PRIOR TO A CHANGE IN OWNERSHIP IN WHICH A THIRD PARTY ENTITY BECOME A 25% INDIRECT EQUITY OWNER OF THE FIRM. ON OR ABOUT SEPTEMBER 10, 2009, A THIRD PARTY ENTITY PURCHASED 20% OF THE EQUITY OF THE FIRM FOR A TOTAL OF $1,000,000. BASED ON THE ACQUISITION OF 20% OF THE EQUITY OF THE FIRM, THE ENTITY BECAME A 20% INDIRECT EQUITY OWNER OF THE FIRM. ON OR ABOUT JANUARY 27, 2010, THE ENTITY PURCHASED AN ADDITIONAL 5% OF THE EQUITY OF THE FIRM FOR A TOTAL OF $250,000. THE ENTITY'S PURCHASE OF AN ADDITIONAL 5% OF THE EQUITY OF THE FIRM CAUSED IT TO BECOME A 25% OWNER OF THE FIRM, AND THEREBY, A 25% INDIRECT EQUITY OWNER OF THE FIRM.

Acceptance, Waiver & Consent(AWC)

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

$15,000.00

Suspension

ANY PRINCIPAY CAPACITY

TWO MONTHS

12/5/2011

2/4/2012

WITHOUT ADMITTING OR DENYING THE FINDINGS, AGUILAR CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $15,000, JOINTLY AND SEVERALLY, AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY PRINCIPAL CAPACITY FOR TWO MONTHS. THE SUSPENSION IS IN EFFECT FROM DECEMBER 5, 2011, THROUGH FEBRUARY 4, 2012.

TRICOR, ACTING THROUGH AGUILAR, FAILED TO FILE WITH FINRA AN APPLICATION FOR APPROVAL OF A CHANGE IN EQUITY OWNERSHIP AT LEAST 30 DAYS PRIOR TO A 25% CHANGE IN THE INDIRECT OWNERSHIP EQUITY OF THE FIRM.