Everest Wealth Management Accused of Fraud

[scagnt83]

I don't completely agree here. When you talk to someone about moving a large amount (or even smaller amount for that matter) of money there's a good chance that the very best thing for them to do involves multiple products (managed money and an annuity). Also I understood his 60/split to be an average, not a one size fits all rule. Cross-selling isn't illegal, but bait and switch without disclosures about the rest of what you do is.

Not being licensed in a state you do business in though... especially if it's the majority of your business...

I dont disagree that multiple products are often the best thing. But when you advertise for a fixed product, and intend to put that client into securities as well, and fail to disclose that fact; that is an illegal act.

 

[FBN]

Here's the latest on this case. Would be very surprised if they are not permanently banned.

Everest Wealth Management argues against Attorney General Brian Frosh's accusations - Baltimore Business Journal

State brass slaps money managers with fine | thebaynet.com | TheBayNet.com | Articles

 

[DHK]

Just did a search on this, so I thought I'd add this post:

Everest Wealth Management barred from investment advisory business

Yep - they were barred.

 

[FBN]

I used to hear their radio and TV program when I lived in the Baltimore area. Mainly selling indexed annuities and advertising that you would make 6-8% without losses. Totally deceptive but I hear the same crap on radio now in the Raleigh area - make 6-8% on your money with no losses and guaranteed income for life. If the DOL regs stay in place then I guess Everest would lose their insurance license also. It should happen to a lot of other shady advisors aslo.

 

[DHK]

If the DOL regs stay in place then I guess Everest would lose their insurance license also.

I haven't seen anything to suggest that the DOL would have the regulatory authority to rescind licenses. Only the right to issue regulations and have standards fought for in court where it would then be determined whether they sold FIAs in alignment with the fiduciary standard.

 

[FBN]

I haven't seen anything to suggest that the DOL would have the regulatory authority to rescind licenses. Only the right to issue regulations and have standards fought for in court where it would then be determined whether they sold FIAs in alignment with the fiduciary standard.

You are correct but I think it would follow that if a company is deceptive and fraudulent in their advertising then the likelihood that they are presenting products to the client that are in the client's best interest are pretty slim. The remedy for a violation of one's fiduciary duty can only be addressed by loss of the privilege of being a fiduciary which I am sure would be enforced by further regulations that would need to be written if the proposed DOL rules actually take effect.

 

[VolAgent]

You are correct but I think it would follow that if a company is deceptive and fraudulent in their advertising then the likelihood that they are presenting products to the client that are in the client's best interest are pretty slim. The remedy for a violation of one's fiduciary duty can only be addressed by loss of the privilege of being a fiduciary which I am sure would be enforced by further regulations that would need to be written if the proposed DOL rules actually take effect.

The DOL doesn't have the authority to rescind a license, as those are issued by the states through the Department of Insurance or equivalent.

However, they don't need it. They could simply create a list of people barred from acting as a fiduciary on any DOL regulated product. That would probably be sufficient to prevent any company from contracting the person period. Eases the compliance burden to make sure they aren't selling DOL regulated products, also the company would be wide open for lawsuits further bad behavior by the agent.

 

[walthamny]

I am just reading this. Why isn't Metlife getting prosecuted for having blank signature guarantee forms available?

 

[VolAgent]

I am just reading this. Why isn't Metlife getting prosecuted for having blank signature guarantee forms available?

Not sure what you are asking here? I'm guessing this is more to it than they have a blank form available for download that can be filled in for the client?

 

[FBN]

I was googling the advisor's name and noticed that apparently he like to gamble, playing in poker tournaments. Would you want your fiduciary advisor to be a gambler? Sometimes the warning signs of trouble are right in front of our noses if we bother to look.