Institutional Investment Fraud Lawyers 

Research Foundation Awarded More Than $7.3M In Their FINRA Lawsuit Against Principal Securities. Our Institutional Investment Fraud Lawyers are Representing Nonprofits, Charitable Organizations, Endowment Funds, And Institutional investors   

Churning, Unsuitability, and Supervisory Failures Alleged in Nonprofit’s Broker Fraud Claim

A Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded over $7.3 million to the Rosenau Family Research Foundation (formerly known as The Legacy of Angels Foundation) in their stockbroker fraud claim against Principal Securities. The 501 (c)(3) nonprofit, which helps promote awareness and education around Cystic Fibrosis and Krabbe disease, accused the brokerage firm of allegedly excessive trading in variable annuities, making unsuitable investment recommendations, supervisory failures, negligence, and other acts of broker misconduct.

The Foundation contends that their Principal Securities broker unsuitably recommended they place most of their assets in variable annuities (VAs) and variable life insurance policies without fully disclosing all of the costs. The investments included PacLife, John Hancock, Principal, Guardian, Lincoln, Jackson, and Nationwide. According to a report by this organization to the US Securities and Exchange Commission (SEC) in February 2024, the organization indicated losses of up to $5M.

While variable annuities can provide tax benefits, they are complex investments. There also can be serious risks involved that are important for the investor to understand. For example, the insurance company that issued the VA could fail, which likely means a cessation of the sums due to you. Or, if your money has been invested in sub-accounts that are tied to certain markets, this could negatively impact your funds if volatility or downturns happen. Also, there can be high surrender charges if you want to withdraw your money early. Yet, because VA sales tend to pay high commissions to broker-dealers, this can compel some of them to sell these to investors even when it is not appropriate.

Churning, which may involve excessive buying or selling of VAs (or other investments), by a financial advisor to generate more commissions is stockbroker fraud.

Representing Organizations and Institutional Investors In Recovering The Damages They are Owed

For over 30 years, Shepherd Smith Edwards and Kantas (investorlawyers.com) have been representing nonprofits, foundations, endowment funds, pension funds, charitable organizations, municipalities, trusts, retirement plans, corporations, private equity investors, and other institutional clients in their broker fraud lawsuits. You want to work with skilled securities lawyers that are familiar with representing your kinds of investment loss claims and how to maximize your chances for a full financial recovery.

We have the skills, resources, and knowledge to thoroughly investigate your investment losses and file a strong lawsuit for you should we decide to work together. Over the decades, we have collectively recouped many millions of dollars for individuals, organizations, and large institutions.

Schedule Your Free, Initial Consultation With Our Savvy Institutional Investment Fraud Lawyers 

Call (800) 259-9010 or contact us online.