Cecil Nivens, formerly with NYLife Securities, Suspended Two Years by FINRA
Have you lost money with financial advisor Cecil Nivens of Gastonia, North Carolina? We are continuing our investigation into allegations made by FINRA, the Financial Industry Regulatory Authority, against Cecil E. Nivens. FINRA previously brought a complaint against Nivens in March 2017, alleging that he recommended that his customers purchase variable universal life (VUL) insurance policies, using the proceeds from the customers’ existing variable annuities to pay for the VUL premiums.
FINRA alleged that when Cecil Nivens completed these transactions, he failed to complete and process the proper documentation to qualify as 1035 exchanges. Had the transactions properly used a 1035 exchange, the customers could have avoided paying taxes on the withdrawals from the variable annuities. Moreover, many of the customers incurred unnecessary surrender charges when withdrawing funds from the annuities. FINRA alleges that this conduct took place between February 2012 and April 2013.
In September 2017, after Nivens failed to respond to the complaint, FINRA suspended Nivens from the securities industry for two years. FINRA also ordered him to disgorge $185,737 in commissions from the VUL sales. However, brokers who are ordered to pay restitution or disgorgement rarely pay these penalties if they intend on leaving the securities industry permanently.
Cecil Nivens was a financial advisor and registered representative of NYLife Securities from 1991 to February 2014. He worked at a branch office in Gastonia, North Carolina. Nivens has also been the subject of at least 11 customer complaints, and he was terminated by NYLife Securities. NYLife has already paid out over $558,000 in settlements to Nivens’ former customers.
Brokerage firms like NYLife Securities have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in North Carolina in the past. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including NYLife Securities.
Click to view: Nivens, Cecil FINRA Order
Click to view: Nivens, Cecil FINRA Complaint
Click to view: Nivens, Cecil BrokerCheck 3.3.17
If you lost money with Cecil Nivens or NYLife Securities, please CONTACT US at 206-795-5798 for a free evaluation of your case.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.