Annuity Fraud Claims

Financial advisers often sell variable annuities, not because they are particularly good investments, but because they pay significantly higher commissions than more conventional investment products. For this reason, we believe that annuities, and variable annuities in particular, are a product that is often associated with financial adviser misconduct and fraud. We often see the same issues and problems with variable annuities.  As a result, we typically see four types of cases involving annuities – theft, unsuitability, misrepresentations and excessive fees.

We have a successful track record representing investors in arbitration cases concerning the fraudulent offering of variable annuities. In 2017, the firm won an arbitration award in excess of $1 million for a family in Utah who purchased an annuity based on the false promises of their financial advisor. (“FINRA Arbitration Panel Awards Wilbanks Securities Investor $1 million for Misleading Sales Pitch on Variable Annuity” Investment News, April 14, 2017).

If you or someone you know lost money, or suspects that they lost money, with an annuity investment – contact us today.

What is a surrender fee?

A surrender fee is a fee paid to the annuity company by an investor who wishes to withdraw some or all of their principal before the annuity period has expired. Surrender fees make some annuities unsuitable for short term investors and seniors, who may need access to their funds.

What are the different types of annuities?

There are generally three different types of annuities – variable, fixed and indexed.

What are living benefits?

Some insurance companies offer features designed to provide downside protection to investors. These benefits often have different names and may be called “guaranteed minimum income,” or “guaranteed minimum accumulation.” Investors often pay more money for these features, which are commonly misunderstood and misrepresented by financial advisers.

My financial adviser said they did not receive a commission for my annuity, could that be true?

Absolutely not.

How can I get money out of my annuity?

The short answer is, you may not be able to without paying a surrender fee. You can only begin collecting on your annuity, without special fees, when it is in the “payout phase.”