Massachusetts charges insurance salesman with posing as investment adviser
Ryan Skinner created scheme to have seniors liquidate securities to buy annuities
Massachusetts securities regulator William F. Galvin has charged Ryan P. Skinner, an insurance salesman, with posing as an unregistered investment adviser in a scheme to convince seniors to liquidate securities in order to purchase annuities through his company.
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Mr. Skinner and his company, Summit Financial Partners, made millions of dollars in commissions through the scheme, the state charged, in an administrative complaint that seeks an order requiring Mr. Skinner and Summit to disgorge all profits from the scheme and to provide restitution to investors for losses. The state is also asking for an administrative fine to be imposed.
The complaint charges that Mr. Skinner advertises himself as a “retirement specialist” to seniors, inviting them to free lunches where he convinces them that he will help them maximize their Social Security and retirement income. Although he claims to offer personalized financial advice and planning services, he and his firm “instead merely sell the same fixed annuity products to virtually all of their clients,” Mr. Galvin’s office said in a release.
“Mr. Skinner repeatedly recommends that prospective clients liquidate securities from their retirement investment accounts to purchase fixed indexed annuities,” the complaint states. “In many instances, Mr. Skinner recommends that prospective clients surrender existing annuities incurring significant penalties. In some cases, Mr. Skinner also recommends that client or prospective client’s entire life savings consist of annuities sold through him.”
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The state said that at least 128 clients in Massachusetts were sold the same annuity product, producing $4 million in commissions for Mr. Skinner and Summit Financial. Mr. Skinner is licensed with the Massachusetts Division of Insurance, but is not a registered investment adviser representative, and his company is not registered with the state’s securities division.
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