Tag Archives: variable annuity

Investors of Judith Johnston, NY Life

Investors of Judith Johnston of Frisco, formerly employed by NY Life, may have recourse for investment products sold to them.  Ms. Johnston was recently barred from the securities industry for failing to comply with an investigation into her annuity and insurance sales.  Please call 1-866-817-0201 for a free consultation with an attorney.

Ms. Johnston came to the attention of the regulator, FINRA, the Financial Industry Regulatory Invest photo 2Authority, due to the high number of customer complaints.  Eight different investors have submitted written complaints and have either sued NY Life concerning Johnston’s sales activities or threatened to sue.

The complaints by investors included Johnston’s solicitation and sale of variable universal life and variable annuities.  These complaints asserted that Johnston mislead them concerning various aspects of the financial products, such as the fees, the costs and the feasibility of taking .  They also assert that the husband of Johnston engaged in deception during the sale of these products and that Johnston was complicit.

On November 6. 2018, FINRA Enforcement sent a request to her address, requesting that she appear to provide testimony on December 4, 2018. On November 20, 2018, Johnston hired an attorney and testimony was rescheduled for January 24, 2019.

On January 24. 2019. Johnston appeared to start her testimony.  At the conclusion of one day of testimony on January 24th, FINRA staff determined that it needed additional testimony from her and requested that she appear to continue her recorded hearing.

By email dated February 11, 2019. Counsel for Johnston stated that Johnston would not comply with FINRA’s request to provide any additional testimony, and no longer wished to cooperate with the investigation. As stated in the email to FINRA staff on February 11, 2019, and by this agreement. Johnston acknowledges that she received FINRA’s request to provide testimony. and will not comply with that request.

MetLife Annuity Losses

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.

MetLife Building 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.