Tag: life insurance fraud lawyer

Michigan Representative Fined and Suspended by FINRA over Unlicensed Insurance Sales and Misappropriation

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Brian Kenneth Edwards (CRD #6011762) was fined $5,000 and suspended by FINRA for fourteen (14) months for violating Michigan law and his member firm policies by allegedly permitting his insurance agency to enter into a client referral relationship with an individual who was not licensed to sell insurance. FINRA further alleged that Edwards created circumstances which allowed the unlicensed individual to misappropriate over $6,900 in funds from customers that were intended to pay insurance premiums. Despite discovering such misconduct, FINRA alleged that Edwards failed to report the misconduct to the insurance affiliate, and did not terminate his agency’s relationship with the individual until one (1) month later. (See FINRA AWC No. 2013037999901)

According to FINRA’s Broker Check, Brian Kenneth Edwards is not currently licensed to act as a broker or as an investment adviser. Edwards has been registered in the securities industry for one (1) year with the following firm(s):

STATE FARM VP MANAGEMENT CORP.
CRD #43046
BLOOMINGTON, IL
01/2012 – 08/2013

If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.

SEC charges Los Angeles based firm, Pacific West Capital Group, Inc., and it’s owners with Fraud Relating to the Sale of Life Settlements

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On April 8, 2015 the Securities and Exchange Commission (“SEC”) filed a complaint against Pacific West Capital Group, Inc., Andrew B. Calhoun IV, Brenda Christine Barry, Andrew B. Calhoun Jr., Eric Christopher Cannon, Michael Wayne Dotta and Caleb Austin Moody. The SEC complaint alleges that Pacific West Capital Group and its owners committed fraud in the sale “life settlement” investments. A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value, but less than its net death benefit.

The SEC alleged that since 2004 Pacific West and Calhoun raised approximately $100 million from life settlement investors. Furthermore, the SEC alleges that in 2012 Pacific West and Calhoun defrauded investors by using the proceeds from the sales of new life settlements to fund life settlement investments sold years earlier. However, this was not disclosed to the investors at Pacific West. The SEC complaint alleges that Pacific West and Calhoun made life settlement investments appear successful when in reality the primary reserves were used to pay premiums on the policies. As such, the SEC has alleged that Pacific West and Calhoun violated the antifraud, securities registration and broker-dealer registration provisions of the federal securities laws. (See Complaint Case No. 2:15-cv-02563 United States District Court Central District of California.)

If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a free initial consultation.