If you have suffered losses in an annuity with MetLife we are interested in speaking to you irrespective of the type of annuity. Please call 303-300-5022 in Colorado or nationally 1-866-817-0201.
It has come to our attention that many MetLife agents may participate in a pattern and practice of selling such annuities that are not properly vetted and outside the review of supervisors, a practice termed “selling away.” Such an action is commonly a form of fraud.
Further Metlife has come under scrutiny from FINRA and has been ordered to pay $25 million, the largest fine the regulator has ever levied concerning annuity violations.
The FINRA action focused upon Metlife’s practice of recommending the replacement of one variable annuity with another. Variable annuities are expensive, high commissioned investment products. Replacing variable annuities comes with a great cost to the investor while giving a substantial commission to the broker. The replacing investment is also generally considered to be of little to no improvement over the existing annuity. As such, the broker is placing the broker commissions ahead of the investor’s best interests. This is a practice that is commonly called excessive trading and could also be termed “churning.”
State and federal securities laws prevent licensed securities brokers from participating in churning. Churning is an action that most associate with the sale of stocks, but happens any time a broker in effective control of an account causes the sale and purchase of an investment that puts the broker’s commission ahead of the investor’s interests.
The Law Offices of Jeffrey Pederson has handled numerous annuity cases for investors nationwide. Call for a free consultation.