FINRA investigated Phillips’ alleged misconduct in order to determine the scope of his misrepresentations and failure to disclose information to his customers. According to FINRA, between November 2013 and September 2014, Phillips assisted his customers with 16 variable annuity switches where he misstated the fees associated with the VA switches. FINRA alleged that for all but one of the variable annuity switches, the difference between the stated fees and the actual fees was less than 1%.
Phillips’ alleged misconduct violated several FINRA rules and regulations, including FINRA Rule 2010 and 4511, as well as Securities Exchange Act Rule 17a-3. For example, FINRA Rule 2010 requires members to comply with “high standards of commercial honor and just and equitable principles of trade.” Here, Phillips consented to an AWC without admitting or denying the findings that he recommended variable annuity switches and misrepresented the fees associated with the switches to his customers.
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 damages investing with Phillips through Wesbanco Securities, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.