by Structured Settlement Watchdog
A retiree , the vast majority of whose net worth was placed in a structured settlement derivative misrepresented as an annuity, has filed a claim with the Financial Institution National Regulatory Authority (FINRA) against an Oregon financial firm. The allegations in the claim, filed November 28, 2018, say that the Oregon firm allegedly took an order from the retiree's wife, despite no written legal authority to speak with the wife about the retiree's account, such as a power of attorney to act on her husband's behalf.
The structured settlement derivative, was marketed by the Oregon firm using the scam label "secondary market annuity", originated from a case that was part of the Access Funding lead paint victim scandal. The retiree now has not received any "secondary market annuity" payments, which were scheduled to begin in January 2018, leaving the retiree without the vast majority of his retirement savings and none of the expected income. Ongoing litigation involving the Maryland Attorney General means continued uncertainty regarding the "secondary market annuity" payments.
The retiree alleges the following against the Portland Oregon firm:
- Breach of Fiduciary Duty
- Negligent Supervision
- Breach of Contract
- Unauthorized Trading
FINRA Rule 4530(d) requires firms to report quarterly statistical and summary information regarding written customer complaints. FINRA uses the information to identify and initiate investigations of firms, offices and associated persons that may pose a risk, and for the timely identification of other regulatory matters in line with its goal of enhancing risk-based approaches to regulation, investor protection and market integrity. The complaints are part of the firm’s Risk Monitoring Report Cards.
The statistical and summary information regarding customer complaints required pursuant to FINRA Rule 4530(d) is due quarterly by the 15th calendar day from the end of the quarter. If the 15th falls on a weekend or holiday, the report is due the next business day following the 15th.
Based on the above, the Oregon firm will be required to report the complaint by Wednesday January 15, 2019.