We are currently investigating Michael Kirwan and his potentially inappropriate annuity sales. These actions include misrepresenting important aspects of annuities and failing to manage the annuities in an appropriate manner. Please email us or call us at the toll-free number above.
Investor allegations are many. Kirwan stating that he was not receiving a commission, which would conceal that he was selling a high commissioned product in violation of the investor’s best interests, is one allegation. Misrepresenting surrender charges to make the investment appear liquid is another. As such, Investors allege that Kirwan committed fraud in the sale of the annuities.
Mismanagement is another allegation. The value of annuities is often dictated by the performance of the annuity subaccounts. These are accounts that resemble mutual funds. The subaccounts are required to be invested in a manner that is in the best interests of the investor and suitable for the investor’s objectives and risk tolerance. As such, aggressive subaccounts can be a violation of securities laws. Investors allege that Kirwan invested the subaccounts inappropriately and excessively traded the accounts in a manner that inappropriately increased the risk.
Kirwan also made the representations by inappropriately using his private and non-brokerage email. This has the effect of hiding the communications from supervisors. Supervisors, however, have a duty to audit advisors and this includes learning all email addresses that the advisor may be using. An advisor failing to use only the brokerage’s email, here the American Portfolios domain, violates multiple FINRA and SEC regulations to prevent fraud and protect records. This creates liability for both the advisor and the advisor’s firm.
The employment history of Kirwan reveals a history of investors accusing him of fraud. He previously settled claims concerning racketeering and falsifying the signatures of investors to initiate wire transfers. Advisors with this type of history should be under heightened supervision by their employers.
Jeffrey Pederson PC has a long history of representing investors in cases concerning fraudulent retirement investments. Lawsuits of this kind are required to be handled through FINRA arbitration. We have represented investors in FINRA arbitrations, and its NYSE and NASD predecessor arbitrations, for over 20 years.