FINRA Arbitration Panel Awards A File $3M Egg-Farming Household In Annuity Case

A FINRA arbitration panel has awarded $three.2 million to an Alleghany County egg-farming household swindled in a variable annuity (VA) and life insurance coverage scheme promoted by a former AXA monetary advisor who was lately convicted for stealing from one other aged AXA consumer.

The Whitesville, NY, victims have been represented within the arbitration continuing by the Peiffer Wolf Carr & Kane legislation agency (PWCK). For extra particulars in regards to the case, go to www.brokerwatch.com/axa/upstate-ny.

The award is believed to be the biggest ever paid in upstate New York and in addition the biggest imposed on AXA in arbitration.

The aged victims oversaw the profitable Fitzpatrick Poultry Farm in Whitesville, NY, for a few years earlier than struggling thousands and thousands of in damages by the hands of AXA and its monetary advisor, Francesco Puccio, previously of Webster, NY. Puccio was affiliated with the AXA workplace in Rochester.

At a information convention as we speak, PWCK launched a reality sheet exhibiting a disturbing sample of AXA issues all through Rochester, Syracuse, Buffalo, and upstate New York. The PWCK reality sheet paperwork a number of complaints, settlements, regulatory actions and fines involving AXA and AXA brokers, together with the victimization of 81-year-old Scottsville, NY, widow Shirley Kerwin, who misplaced her complete life financial savings to the identical AXA dealer who cheated the Whitesville egg-farming household. Puccio was later discovered responsible of stealing from Kerwin.

PWCK Accomplice Jason Kane mentioned: “AXA despatched a felonious dealer to serve unsophisticated and aged purchasers after which fully abdicated its supervisory obligations. Nonetheless, an unrepentant AXA contended all through the arbitration that all the things was ‘completely appropriate’ and ‘past reproach.’ This aged couple could have had wealth, however they didn't have funding savvy. AXA and Puccio took them to the cleaners by recommending clearly unsuitable variable annuities and life insurance coverage insurance policies.”

“I’m not completely satisfied in any respect about the way in which AXA handled us,” mentioned Sandra Fitzpatrick, one of many egg-farming household victims. “We’ve realized that you may’t simply belief anyone. You need to watch out, and you must ask earlier than you signal any papers. You need to discover out what you’re signing them for. That’s one thing that we didn’t do as a result of we trusted the particular person AXA despatched to our door. We thought he was going to be sincere. I want to warn different folks to know what you’re signing.”

PWCK Managing Accomplice Joseph Peiffer mentioned: “This arbitration award sends a robust message to AXA and different monetary giants that they're accountable for the conduct of the monetary advisors to whom they lend their names. The definition of an appropriate funding just isn't no matter some felonious dealer can speak any person into shopping for. If there are not any guidelines of the street that AXA and different corporations acknowledge, it is not going to take lengthy earlier than particular person buyers lose much more religion in a system that every one too typically fails them.”

Talking to her separate declare towards AXA, the widow Shirley Kerwin mentioned: “When Puccio stole my cash, I used to be shocked. I turned to AXA. After they refused to assist, I used to be devastated. And, I knew that I needed to take motion to guard myself and anybody else on the market that was harmed by AXA.”

The egg-farming couple fleeced by Puccio didn't perceive the character of the variable annuity and life insurance coverage merchandise by which they invested thousands and thousands of . In what ought to have been a transparent signal of their lack of sophistication, the Fitzpatricks have been discovered to have earlier insurance coverage insurance policies stacked in egg carton packing containers and didn't appear to be conscious they existed. As a substitute of serving to them, Puccio rolled these previous insurance policies into newer and bigger ones that paid hefty commissions to him. The full commissions paid out in only one 12 months to Puccio was effectively over $200,000.

One of many extra damning moments of the arbitration listening to occurred when Puccio was caught impersonating a Fitzpatrick member of the family on an audio recording after which needed to admit he established a fraudulent e-mail account to pose because the eldest member of the household. That very same day he bought one more life insurance coverage coverage to the Fitzpatricks.

Different sources accessible in regards to the Fitzpatrick case embrace:

Peiffer Wolf Carr & Kane has in depth expertise in dealing with funding fraud instances in upstate New York and throughout the U.S.

In November 2017, PWCK gained near half 1,000,000 on behalf of a retired Brighton, NY faculty trainer who was suggested by Frank Monte at Harbor Capital to overconcentrate her financial savings in variable annuities. PWCK has since filed arbitrations on behalf of 10 households in follow-up instances involving Harbor Capital’s annuity recommendation.

Final August, PWCK took authorized motion on behalf of victims of an elaborate funding scheme that succeeded largely by way of the credibility lent to the affair by a community of “middlemen” insurance coverage brokers, brokers, monetary planners/funding advisors (IAs) and others who roped in unwary buyers for Future Revenue Funds LLC (FIP). PWCK launched a coordinated wave of 5 lawsuits in and round Los Angeles, Houston, Chicago, northern Florida, and Philadelphia/New Jersey concentrating on the seemingly authentic monetary professionals who made the FIP scheme work. At the moment, PWCK has FIP-related lawsuits filed in Ohio, Illinois, California, Florida, Texas, New Jersey, Utah, South Carolina, and Minnesota. Extra at https://fiplawsuit.com.

In December, PWCK began helping buyers burned within the OptionSellers.com hedge fund collapse. Even with a deal with high-net-worth people, OptionSellers.com was aggressively marketed to a large spectrum of people, together with unsophisticated retirees with belongings. Along with $150 million or extra misplaced within the hedge fund itself, the margin calls disclosed so far complete greater than $35 million however might add as much as significantly extra. Extra at https://www.optionsellerslawsuits.com/

ABOUT PEIFFER WOLF CARR & KANE

Peiffer Wolf Carr & Kane, APLC is a nationwide legislation agency with workplaces in New York, New Orleans, Cleveland, San Francisco, Los Angeles, and Missouri. https://brokerwatch.com/axa/.