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3/1/07-7/13/10; CLIENT CLAIMS THEY HAD OWNED A 5 YEAR FIXED ANNUITY WITH ANNUAL INTEREST RATE STEP UPS, WITH NO DECREASE IN THE AMOUNT INVESTED. THE CLIENT STATES HE TOLD THE FA HE WAS INTERESTED IN A LIKE INVESTMENT. THE CLIENT CLAIMS HE TOLD THE FA THE INVESTMENT WAS TO BE INCOME PRODUCING AND HE DID NOT WANT THE PRINCIPAL AMOUNT TO DECREASE. THE CLIENT CLAIMS THE FA TOLD HIM THE METLIFE ANNUITY WOULD PAY 5% PER YEAR WITH NO DECREASE IN PRINCIPAL. THE CLIENT CLAIMS THE PRINCIPAL HAS DECREASED AND THE 5% HAS NOT BEEN FORTHCOMING. THE CLIENT CLAIMS HE HAS TO DO ADDITIONAL PAPERWORK TO GET THE $5,000.00 INTEREST AND THIS CAUSES A DELAY. THE CLIENT ALSO CLAIMS THE STATEMENTS FROM EDWARD JONES AND METLIFE DO NOT REFLECT THE ANNUAL INTEREST EARNED. THE CLIENT IS REQUESTING A COMPLETE DETAILED ACCOUNT FROM THE DATE OF THE INVESTMENT AND HE WANTS HIS ACCOUNT TO BE RESTORED TO THE ORIGINAL AMOUNT HE INVESTED OF $100,000.00. THE CLIENT ALSO WANTS ALL OF THE ACCRUED INTEREST AT THE RATE OF 5% PER ANNUM AND INTEREST EARNED ON THE MONIES HE HAS NOT RECEIVED. FILING REQUIRED, CURRENT VALUE OF THE ANNUITY IS $73,084.78.
LITIGATION: PLAINTIFF, CLIENT OF JONES, ALLEGES THAT HE WAS FRAUDULENTLY INDUCED BY JONES FA TO INVEST $100,000 IN A VARIABLE ANNUITY. PLAINTIFF ALLEGES THAT FA FRAUDULENTLY AND KNOWINGLY MISREPRESENTED THAT THE ANNUITY WOULD GENERATE GUARANTEED RETURNS.
Damage Amount Requested
$5,000.00
Settlement Amount
$110,000.00
Broker Comment
FA INDICATES HE PRESENTED A VARIABLE ANNUITY FOR A PORTION OF THE FUNDS CLIENT WAS GETTING FROM HIS FIXED CONTRACT. FA STATES HE REVIEWED THE METLIFE VARIABLE ANNUITY BROCHURE WITH THE CLIENT WHICH REFLECTED THE FLUCTUATION OF PRINCIPAL OF A VARIABLE CONTRACT. FA SATES HE ALSO EXPLAINED THE CONTRACT HAD AN INCOME RIDER. FA STATES, HE EXPLAINED THIS WOULD PROVIDE A GUARANTEE 5% INCOME WITHDRAWAL, WHICH COULD NOT BE OUTLIVED BY THE CLIENT OR THE SURVIVING SPOUSE, EVEN IF THE PRINCIPAL WERE TO GO TO ZERO. FA CLAIMS THE CLIENT WAS INTERESTED IN THE PRODUCT AND REQUESTED THE FA PROCEED WITH THE PURCHASE. THIS IS SUBSTANTIATED BY THE ACKNOWLEDGEMENT LETTER THE CLIENT SIGNED ON 3/1/07 WHICH STATES "I AM AWARE THE PERFORMANCE OF MY ANNUITY IS NOT GUARANTEED BY THE ISSUING COMPANY OR EDWARD JONES AND THE VALUE OF MY ORIGINAL INVESTMENT MAY INCREASE OR DECREASE AT ANY GIVEN TIME. I UNDERSTAND VARIABLE ANNUITIES ARE SUBJECT TO MARKET FLUCTUATION." CLIENT ALSO SIGNED THE DELIVERY RECEIPT AND RECEIVED THE PROSPECTUS. CLIENT HAS ALSO BEEN SENT QUARTERLY STATEMENTS FROM METLIFE, WHICH REFLECT THE CONTRACT IS A VARIABLE CONTRACT AND HOW THE FUNDS ARE INVESTED. WE BELIEVE THE VARIABLE ANNUITY WAS PURCHASED WITH THE CLIENT'S FULL UNDERSTANDING AND KNOWLEDGE. CLIENT DID NOT EXERCISE THE FREE LOOK. THE 5% INCOME GUARANTEE IS DIFFERENT THAN $5,000.00 ANNUAL EARNED INTEREST. THE CONTRACT IS VARIABLE; THEREFORE IT DOES NOT GUARANTEE $5,000.00 ANNUAL EARNED INTEREST. OUR RECORDS INDICATE THE CLIENT HAS WITHDRAWN $10,250.00. WHEN METLIFE RECEIVED THE 2009 PAPERWORK IT WAS FILLED OUT INCORRECTLY. METLIFE AND EDWARD JONES WORKED TOGETHER AND RESOLVED THE ISSUE. IN LIGHT OF THE INFORMATION AVAILABLE WE RESPECTFULLY DENY THE CLIENT'S REQUEST TO RESTORE THE ORIGINAL AMOUNT OF THE INVESTMENT, OR ANY OTHER REIMBURSEMENT RELATED TO THIS INVESTMENT.
PLAINTIFF, CLIENT OF JONES, ALLEGES THAT HE WAS FRAUDULENTLY INDUCED BY JONES FA TO INVEST $100,000 IN A VARIABLE ANNUITY.
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Disclosures
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.
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Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.