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The Illinois Securities Department has revoked the registration of Thomas N. Cooper and Susan B. Cooper of Senior Financial Strategies Inc., doing business as Pinnacle Investment Advisors,
The Illinois Securities Department has revoked the registration of Thomas N. Cooper and Susan B. Cooper for wrongfully liquidating customer annuities to fund the purchase of fixed indexed annuities.
The Illinois Securities Department’s investigation uncovered that between Feb. 26, 2008, and June 9, 2008, the Coopers sold 65 Aviva fixed indexed annuities, garnering some $426,281 in commissions.
The Illinois Securities Department examined twelve cases involving customer who had liquidated annuities or IRAs to fund the purchase of fixed indexed annuities from Aviva, the order stated.
The 12 investors, who were an average age of 73, paid a total of $122,630 in surrender charges from the liquidation of annuities from American Equity Investment Life Holding Co., Allianz Life Insurance Co. of North America, Old Mutual Financial Network and EquiTrust Life Insurance Co.
The Coopers were also found to have told the clients that by moving their money to an Aviva fixed indexed annuity, they would have access to six different crediting strategies, 4% guarantees on income for life and protection from Medicaid spend-downs.
Thomas N. Cooper and Susan B. Cooper have been barred from selling securities in Illinois, and have been fined $10,000.
According to the Illinois Securities Department order, the wrongful transactions date back to 2006 when the Coopers recommended that their customers transfer $46,000 from a Lincoln Benefit Life Co. variable annuity that was held in an individual retirement account to purchase a fixed indexed annuity from Aviva USA.
The clients lost $27,000 in death benefits due to the transfer.
Regulators' investigation revealed that between Feb. 26, 2008, and June 9, 2008, the Coopers sold 65 Aviva fixed indexed annuities, garnering some $426,281 in commissions, the order said.
The secretary of state's office, which regulates the securities industry in Illinois,
In Illinois, as registered investment adviser reps and as investment advisers, the Coopers are held to a fiduciary standard.
Illinois Securities Department found the transactions to be unsuitable and not in the customer’s best interests, due to their age and the surrender penalties.
If you have been damaged as a result of the fraudulent annuities, contact us for a free evaluation of your claim. All matter accepted on a contingent fee basis.
Nicholas J. Guiliano, Esquire, Guiliano Law Firm, P.C. Practice limited to the representation of investors in arbitration claims against stockbrokers for fraud, the sale of unsuitable investments, breach of fiduciary duty, failure to supervise. National Practice. Contingent Fee. Free Consultation. (877) SEC-ATTY.
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