Posted in: Greedy Brokers | Breach of Fiduciary Duty | Risky Investments | Variable Annuities |
A Nebraska couple filed suit against LPL Financial last month, claiming one of its brokers misled them about the costs and risks associated with annuities.
Bob Bennie, of Bob Bennie Wealth Management allegedly misrepresented the sales of $366,500 in annuities to his clients, Richard and Carol Ripley. As an independent financial advisor, Bennie is one of 12,000 independent financial advisors under the umbrella of LPL Financial, which filed for public offering this month.
According to the couple’s attorney, Bennie touted variable annuities as a combined life insurance plan and investment that came tax deferment and death benefits. But the Ripleys already had tax sheltered retirement accounts - which they were persuaded to cash in - and needed a steady retirement income, according to the lawsuit filed in Nebraska state court.
Variable annuities are only suitable for a small number of investors, but financial advisors and brokers often offer these investments because they come with high commissions. Annuities can also come with certain conditions that are understood by advanced investors.
To make this case more interesting, Bennie is a former leader of the Lancaster County Republican Party, and this year organized anti-government “Tea Party” events in the state. While Bennie was not named as a defendant in the Ripleys’ lawsuit, he is believed to have sold variable annuities to other customers.
It is such a shame that bad brokers use variable annuities to commit fraud, because it often means elderly victims are in the crosshairs. Annuity fraud can ruin the lives of retirees, who are hit with unexpected costs and loss of income.
In the case of LPL Financial, they may have to defend in court why one of its employees appears to have breached his fiduciary duty. It has been far too common for large independent broker-dealers to reap profits from brokers while failing to provide proper supervision.
If you have purchased variable annuities from Bob Bennie, or any broker you feel failed to properly advise you, contact us immediately for a free consultation of your case.
