Financial Advisor Richard Wesselt, The O.N. Equity Sales Company Financial in Collegeville, PA
FINRA Reportedly Bars Rich Wesselt in Connection with Alleged Unsuitable Annuities Sales
According to The Financial Industry Regulatory Authority (FINRA), the regulator has reportedly barred financial advisor Richard Wesselt (Rich Wesselt) from associating with any FINRA member at any time.
According to a Letter of Acceptance, Waiver and Consent (AWC) on November 9, 2020, from March 2014 through September 2017, Wesselt purportedly promoted investment strategies involving the purchase of variable annuities and whole life insurance policies. Wesselt’s purported strategy was the recommendation that customers first liquidate their retirement savings in order to purchase variable annuities.
After purchasing these annuities, Wesselt often allegedly recommended that customers make substantial and costly withdrawals from the annuities in order to purchase from Wesselt whole life insurance policies.
According to the AWC, Wesselt allegedly told these customers, many of whom were allegedly incurring large or unexpected expenses, that they could use the cash value in their whole life insurance policies to make loans to themselves. According to FINRA, Wesselt’s purported recommendations to 78 customers that they purchase variable annuities as part of this investment strategy were unsuitable, and reportedly resulted in significant harm to these customers, including unnecessary surrender charges, costly fees and penalties, forfeiture of expected benefits, and the depletion or complete loss of their retirement savings.
Further, in connection with his alleged unsuitable recommendations, Wesselt purportedly had customers sign incomplete or blank pages of various documents, including new account documents, variable annuity disclosure forms, and documents authorizing the withdrawal of funds from variable annuities, in violation of FINRA Rules.
According to his broker report, Wesselt was reportedly affiliated with The O.N. Equity Sales Company Financial Services in Collegeville, PA from 2014 to 2017. Since then he has been affiliated with Fortune Financial Services.
Wesselt reportedly has 17 customer complaints filed against him during his career in the securities industry. Allegations include misrepresentation, unsuitable investment and strategy recommendations, and unsuitable sales of life insurance policies, among others.
Investigating Potential Lawsuits
The O.N. Equity Sales Company and all brokerage firms have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.
If you are concerned about your investments with Richard Wesselt and The O.N. Equity Sales Company, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.