Lincoln Financial Advisors Corporation, Hedge Funds, and
Private Placement Variable Annuities
We are currently investigating allegations made against Lincoln Financial Advisors Corporation, a Fort Wayne, Indiana-based securities brokerage firm. FINRA (the Financial Industry Regulatory Authority) filed a regulatory complaint against Lincoln Financial Advisors, alleging that it failed to adequately supervise the sales of a hedge fund that were offered as a sub-account for a private placement variable annuity.
FINRA alleged that the hedge fund engaged in complex options trading, which exposed customers to a high degree of risk. At least 25 customers of Lincoln Financial Advisors invested in this hedge fund, totaling over $11.7 million invested. The hedge fund was offered between October 2008 and April 2009 from two Lincoln Financial Advisors offices – one in Salt Lake City, Utah, and another in Denver, Colorado. Eventually the fund was shut down in 2010, creating substantial losses for investors.
FINRA alleged that Lincoln Financial failed to provide adequate training to representatives who sold the fund, and that it failed to supervise customer-specific suitability determinations in connection with the sale of this hedge fund. FINRA further alleged that Lincoln Financial failed to supervise some of the customers’ over-concentrations in this fund. To settle these allegations, Lincoln Financial agreed to pay a fine of $150,000.
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, and we have previously represented numerous investors in the Salt Lake City, Utah-area, and the Denver-area. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James Financial Services, ProEquities, Securities America, National Securities Corp., and many others.
If you lost money with Lincoln Financial Advisors in hedge funds or private placement variable annuities, please Contact Us at 720-599-3505 for a free evaluation of your case.
Click to view: Lincoln Financial FINRA AWC