What Did Your Brokerage Firm or Investment Adviser Do Wrong With GWG
Published On: July 25, 2016

Stoltmann Law Offices is interested in speaking to those investors who may have invested money with Thomas Schober, formerly of SII Investments in their Westborough, Massachusetts office location. Schober was accused by the Financial Industry Regulatory Authority (FINRA) of recommending unsuitable variable annuity exchanges in the accounts of two senior customers, ages 84 and 83. One of the customers held power of attorney for the other who suffered from dementia and both customers were conservative investors with limited financial means. FINRA found that Schober effected the annuity exchanges, which were risky and illiquid investments, unsuitable for the client, to receive large commissions for himself. These exchanges caused the customers to pay total surrender charges of $154,642 to sell their annuities and then to pay sales charges of approximately $69,000, of which Schober himself received $65,000 in commissions.

Schober never told the customers how much they would be paying in surrender charges, and neither was aware that they would be subject to new surrender periods. FINRA found that Schober attempted to conceal the unsuitable annuity exchanges by providing false information concerning the source of funds on the annuity transactions documents. This is against securities rules and regulations. A      broker must take into account a customer’s age, net worth, investment objectives and investment sophistication before recommending securities to him or her. If he does not, his brokerage firm may be liable for customer financial losses, because the firm did not reasonably supervise the broker. We sue firms in the FINRA arbitration forum on a contingency fee basis to recover lost money for investors. The call to us is free with no obligation and attorneys are standing by.

Thomas Paul Schober was registered with Marketing One Securities in Portland, Oregon from September 1994 until July 1998, Legacy Financial Services from July 1998 until August 1998, Legacy Financial Services in Freehold, New Jersey from August 1998 until June 2007 and SII Investments in Westborough, Massachusetts from June 2007 until January 2015. He has one settled customer dispute against him. He is not licensed within the industry and FINRA has permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.

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If you have suffered financial losses because of the negligence or fraud of your financial advisor or broker through unsuitable investment recommendations, over-concentration, churning, misrepresenting risks, conversion or selling away, you have legal rights and options to pursue recovery of those losses.

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