Annuity Products Used to Scam Senior Citizens

 

The securities regulator for Illinois has revoked the licenses of two investment adviser representatives, who are supposed to be fiduciaries, for recommending that elderly clients partially liquidate variable annuities in order to purchase equity index annuities, so that the reps could receive hundreds of thousands of dollars in commissions, according to Darla Mercado’s InvestmentNews article entitled “Illinois securities cops revoke licenses of reps for annuity sales.”

Thomas N. Cooper and Susan B. Cooper were reportedly fined $10,000 and barred from the securities industry in Illinois, as was Senior Financial Strategies Inc. doing business as Pinnacle Investment Advisors.

Between Feb. 26, 2008, and June 9, 2008, the Coopers sold 65 Aviva fixed indexed annuities to 12 different clients, garnering some $426,281 in commissions, according to the article.

The investors, who averaged 73 years of age, incurred $122,630 in surrender charges as a result of the liquidation of their variable annuities.

Page Perry is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 45 occasions. Page Perry’s attorneys have extensive experience in representing investors in cases involving annuity products. For further information, please contact us.