Finra issues complaint against broker for unsuitable variable annuity sales

Walter Marino allegedly profited from advising elderly clients to buy new contracts

Apr 26, 2017 @ 1:53 pm

By InvestmentNews

The Financial Industry Regulatory Authority Inc. has issued a disciplinary complaint against former broker Walter Marino for recommending exchanges of non-qualified variable annuities to two customers without having a reasonable basis for recommending the transactions.

Mr. Marino was a broker at Legend Equities Corp., a Palm Beach Gardens, Fla.-based broker-dealer then part of First Allied Holdings, during May and June 2014 when the allegedly unsuitable transactions occurred.

(More: Finra arbitration panel awards Wilbanks Securities investor $1 million for misleading sales pitch on variable annuity)

Finra charges that Mr. Marino received commissions of approximately $60,000 from the transactions while his customers received no benefit. In fact, Mr. Marino's customers suffered financial harm due to $82,523.23 in surrender charges paid, Finra said in a release. In addition, Finra claims Mr. Marino failed to use the tax-free exchange provision available under Section 1035 of the Internal Revenue Code, causing his clients to incur significant tax liabilities.

As a result of Mr. Marino's conduct, Finra ordered him to fully disgorge all ill-gotten gains and make full restitution to his clients.

(More: Department of Labor's fiduciary rule blamed for insurers' massive hit to variable annuity sales)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

What's the top issue on advisers minds?

Laura Pierson from Carson Group discusses how the old topic of 'Human Capital' is hot again because of millennials.

Latest news & opinion

New ways to pay for college

Experts respond to real-life scenarios of people struggling to afford higher education.

How technology is reshaping the advice business

Artificial intelligence, Amazon and robo-advisers are some of the topics on the minds of tech experts.

Best- and worst-performing sector funds and ETFs this year

A rising tide may lift all ships, but a bull market doesn't lift all stock sectors. Here are the best- and worst-performing sectors this year, with the top and bottom fund in each sector.

Betterment slapped with $400,000 fine from Finra

Robo-adviser cited for violating customer protection rule and not maintaining its books and records correctly.

Supreme Court ruling on SEC judges unlikely to upend advice industry

But it could give rise to new hearings for some advisers who are already in litigation with the agency such as Dawn Bennett.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print