The complainant alleges that beginning in 2017, she was sold annual financial plans that she did not need and was told that she was required to have them order maintain a relationship with the firm. She alleges that all of her investable assets were locked into a variable annuity and she had to use its free withdrawal provision to pay for each annual financial plan. She is seeking a return of the annual financial plan costs that she paid.

$15,000.00

Arkansas

Arkansas Securities Commissioner J. Campbell McLaurin entered consent order number S-20-0046-22-OR02 in the matter of Daniel J. Lauletta (CRD# 2659123) on September 1, 2022, based upon Lauletta's activity as an investment adviser representative with two Arkansas clients. Lauletta breached his fiduciary duty to two Arkansas clients by advising them to liquidate securities invested for retirement to purchase unsuitable insurance products and annuities. Lauletta did not have reasonable grounds for believing the advice and recommendations at issue were suitable for the Arkansas clients. Lauletta also failed disclose certain risks and information to the Arkansas clients when effecting the above-referenced activity. Lauletta's activity constituted fraudulent, deceptive, dishonest, or unethical practices of an investment adviser, in violation of the Arkansas Securities Act ("Act"), Ark. Code. Ann. §§ 23-42-307(a)(3), 23-42-308(a)(2)(B) and (G), and 23-42-507(2), and Rules of the Arkansas Securities Commissioner ("Rules") 308.02(a) and 308.02(aa). Without admitting or denying the findings of fact and conclusions of law, Lauletta consented to the following: 1) cease and desist from further violations of the Act and Rules; 2) revocation of his broker-dealer agent registration in Arkansas as of April 12, 2022, the last date on which Lauletta's registration was effective in Arkansas; 3) not to reapply for registration with the Arkansas Securities Department ("Department") in any capacity for a minimum of five years on or after the entry of the consent order; and 4) payment of a fine to the Department in the amount of $10,000.00 immediately upon entry of the consent order.

Consent

Bar (Temporary/Time Limited)

All capacities.

5 years

9/1/2022

9/1/2027

Cease and Desist

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

$10,000.00

Revocation

MML INVESTORS SERVICES, LLC

Discharged

Registered Representative was terminated after the Firm learned the Arkansas Securities Department determined RR had violated provisions of the Arkansas Securities Act.

The customer alleged, beginning in 2012, that the representative provided negligent advice and utilized deceptive sales tactics to prompt the purchase of unsuitable life insurance policies, that were financed in a manner that was unsustainable, that depleted retirement investments to pay collateral obligations, and caused him to incur unnecessary surrender charges and tax penalties.

$1,000,000.00

$1,150,000.00

Internal Case #202038257

The Plaintiff alleges that beginning in 2016, the representative made misrepresentations and fraudulently induced him into purchasing an unsuitable whole life insurance policy.

$5,000.00

$953,000.00

Internal Case #202038025 and 202105210155.

Plaintiff alleges that beginning in 2011 Defendants made misrepresentations and fraudulently induced him into purchasing several Variable Universal Life Insurance policies. He seeks more than $25,000 in damages.

$25,000.00

CLIENT ALLEGED UNAUTHORIZED EXCHANGE OF TWO VARIABLE ANNUITIES TO FIXED INDEXED ANNUITY.

ALLIANZ OFFERED CLIENT A FREE LOOK ON 9/30/2014.

CLIENT ALLEGED THE SURRENDER CHARGES ASSOCIATED WITH HIS APRIL 2010 VARIABLE ANNUITY PURCHASE WERE NOT DISCLOSED.

$21,775.47