Thomas P. Schober recently submitted a Letter of Acceptance, Waiver and Consent (AWC NO. 2015044007001) to settle allegations that he recommended multiple unsuitable annuity exchanges to two elderly clients and concealed the unsuitable exchanges by providing false information on the transaction documents.
FINRA alleges that the annuity exchanges were designed to benefit Schober at the clients’ expense. The two clients allegedly paid approximately $154,642 in surrender charges to sell their annuities. In addition they also purportedly paid total sales charges of approximately $69,000, of which $65,000 was allegedly paid to Schober in commissions.
According to the AWC, Schober’s alleged victims, ages 84 and 83, respectively, where both conservative investors with limited financial means. One of the client’s even apparently suffered from dementia.
Furthermore, FINRA alleges that Shober never disclosed to the clients the amount of the surrender charges they would have to pay to sell their annuities. Allegedly, Schober also failed to explain the sales charges incurred when purchasing new annuities or that they would be subject to new surrender periods.
According to the AWC, given the nature, frequency and size of the transactions and cost to the clients, Schober did not have a reasonable basis to believe that such purchase and sales of annuities were suitable for the clients.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group.
The White Law Group is a national securities law firm dedicated to the representation of investors throughout the country in claims against their brokerage firm.
If you have questions about annuity switches or a variable annuity you purchased, or if you believe that you have been the victim of a securities fraud, The White Law Group may be able to help. To speak with a securities attorney call 1-888-637-5510 for a free consultation
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