AG Edwards & Sons Pays $775,000 to Settle Improper Conduct Charges

May 11th, 2011
by Daniel Carlson
Official photo of Missouri Secretary of State ...

Image via Wikipedia

In early May 2011 Robin Carnahan, Missouri’s Secretary of State, announced that A.G. Edwards & Sons LLC will pay $755,000 in order to settle charges that they improperly handled annuity sales. The investment firm, now a part of Wells Fargo Advisors, purportedly sold variable annuities to elderly customers sans proper documentation.

The State of Missouri Investigates AG Edwards
An investigation by the Securities Division of the State of Missouri into the conduct of AG Edwards began after a client reported “irregularities” following the liquidation of his variable annuity.

Upon investigation, it was discovered that the firm sold variable annuities to elderly investors without maintaining proper records of the transactions. Because proper documentation was lacking, the annuity sales were not in compliance with the company’s own policies and Missouri state law.

Investors Are Compensated
Approximately 31 investors were impacted by this lack of due diligence on the part of the brokerage firm. In compensation, AG Edwards will pay them $381,993. They will also pay for the costs of the investigation and contribute $375,000 to the Missouri State Investor Education and Protection Fund.

In an April 2011 press release, Carnahan said she appreciated AG Edwards’ willingness to cooperate with state officials. Moreover, she urged those who fear for the safety of their investments to seek help.

California Law Protects Elderly Investors
Did you know that California law requires brokers to provide compelling reasons for the exchange or sale of variable annuities belonging to clients 65 or over? If you feel that your variable annuities have been mishandled by a broker, contact Carlson Law.

Tags: , , , , , , , , , , , , ,
Posted in Broker Fraud, Fiduciary Duty Breach, Investment Fraud, Negligent Misrepresentation, Securities Fraud, Securities Law, Securities Litigation | Comments (2)

  • […] AG Edwards & Sons Pays $775,000 to Settle Improper Conduct Charges (securities-fraud-lawyer-blog.com) Share this:Share […]

  • momschips says:

    Hey there! Someone in my Myspace group shared this website with us so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Exceptional blog and excellent style and design.

  • Leave a Reply

    Leave a Reply

    Your email address will not be published. Required fields are marked *