FINRA’s Department of Enforcement investigated Turner’s alleged various misconduct and fraud regarding variable annuity sales. First, FINRA found Turner provided false information in connection with variable annuity transactions. Second, the Panel found Turner falsified Pruco Securities’ books and records. With respect to the first two findings, Turner allegedly recommended that customers liquidate or surrender their variable annuities, deposit the funds into their bank accounts, and then forward the proceeds to Pruco Securities to purchase the new variable annuities. In addition, Turner allegedly submitted documents with forged signatures in order to circumvent supervision and regulatory scrutiny of the transactions.
Finally, FINRA found Turner made fraudulent representations and omissions to at least three customers regarding their variable annuity investments. Specifically, Turner misrepresented the earnings to be generated by their variable annuities and the tax implications of the transactions, respectively. For example, Turner falsely represented to one customer that she was guaranteed to earn 4.5% per year on an annuity. Turner knew or should have known that there was no guaranteed annual return for the variable annuity, but actually a 4.5% guaranteed minimum income benefit.
Based upon the foregoing alleged misconduct, FINRA found Turner violated FINRA Rules 2010, 2020, 4511 and 8210, as well as Section 10(b) of the Securities Act of 1934 and Rule 10b-5 thereunder. For example, FINRA’s anti-fraud rule, Rule 2020, prohibits FINRA members and associated persons from effecting any securities transaction, or inducing the purchase or sale of a security, by means of any manipulative, deceptive, or other fraudulent device or contrivance.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment losses investing with Turner through Pruco Securities, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact form below or contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.