FOR IMMEDIATE RELEASE
November 30, 2015
Contact: Stephanie Fleming, (573) 526-0949
Kander Requires Florida Corporation to Return Exorbitant Fee Charged to Elderly Missouri Investor for Unsuitable Investment
Jefferson City, Mo. — Secretary of State Jason Kander today announced he has secured over $5,700 in restitution from Florida-based Legend Equities Corporation. The settlement with Legend stems from the company approving an investment recommendation that was unsuitable for an investor, which resulted in significant fees.
Legend representative Adam Clyne became the registered representative for an 88-year-old Missouri resident with dementia, following the retirement of her previous investment adviser. The order alleges that Clyne, through Legend, recommended replacing the investor’s two fixed annuities with one variable annuity, which he claimed would provide full access to the funds needed for the woman’s health and well-being. In reality, the 88-year-old Missourian would not have been able to access those funds for eight years without incurring a penalty.
"It’s unfortunate when financial professionals put their clients in investments that are unsuitable for their situation in order to receive a larger fee, especially when elderly Missourians are told to move their investments to long-term products,” Kander said. "I will continue protecting Missourians from being taken advantage of by unscrupulous financial professionals, and remind all Missourians to call the toll-free Investor Protection Hotline before they invest their hard-earned savings.”
The investor’s daughter was given certain rights as power-of-attorney for the mother, and became a trustee for the mother’s revocable living trust. If the investor had been listed as the annuitant herself, the variable annuity would not have been approved due to her age and health at the time of the transaction.
The mother passed away within two years of placing funds in the variable annuity. After her death, the daughter had a legal obligation to distribute the trust assets, which included the variable annuity. She was required to liquidate the annuity, which led to the significant fee of $5,733.79. The settlement recovers that full amount, along with the payment of $7,000 in fines and costs.
Before making an investment decision, Missourians are encouraged to call the Investor Protection Hotline at (800) 721-7996 or visit www.MissouriSafeSavings.com.
Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.