Massachusetts Fines MML Investors Services $250K For Failing to Supervise Ex-Broker Charles Evan

State Securities Regulator Seeks to Ban Former Capital Planning Group Investment Adviser 

Massachusetts securities regulator William Galvin has fined MassMutual broker-dealer subsidiary MML Investors Services $250K for its alleged failure to supervise its former registered representative Charles Jonathan Evan. The ex-Wellesley, MA broker is also a former registered investment adviser who most recently was with Capital Planning Group of Massachusetts, Inc. Both Evan and Capital Planning are respondents in a separate but related civil complaint brought by the state.

According to Galvin’s office, Evan allegedly pressured investors to buy high-commission insurance products that were unsuitable for them. The state securities regulator is seeking to permanently bar him from operating as a financial advisor in Massachusetts.

Our investment loss attorneys are speaking with former customers of Charles Evan who have suffered significant investment losses. Please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today if you also want to explore your legal options.

Not The First Time MML Investor Services Has Been Sanctioned for Alleged Supervisory Deficiencies

According to the consent order, MML Investors Services is settling with the state without denying or admitting to the findings. It will pay the fine and also disgorge profits related to Evan’s allegedly illegal actions. The broker-dealer fired him in 2019.

It was just in 2021 that Galvin’s office fined MML Investor Services $4.75M for its alleged failure to properly supervise its agents over their social media use, including one former broker, Keith Gill, who promoted GameStop stock on his own time. The firm agreed to pay an additional $750K for not registering 478 broker-dealer agents.

Ex-Capital Planning Group Investment Adviser Accused of Allegedly Enriching Himself

In its complaint, Massachusetts’s Securities Division claimed that Charles Evan pushed variable annuities onto investors while he allegedly falsely claimed that he wasn’t earning commissions from these transactions. The Financial Industry Regulatory Authority (FINRA) permanently barred Evan in 2020 after he refused to provide information in a probe into the allegations against him.

Charles Evan’s Central Registration Depository (CRD) notes fourteen disclosures, including eleven customer disputes, some of which are still pending. Examples of the resolved claims: 

February 2021: A variable annuity case alleging unsuitability and misrepresentations that was settled for $31,500.

April 2020: This investor, who alleged unsuitable recommendations involving annuity and life insurance products, received a $130K settlement despite requesting just $5K in damages. 

March 2020: This misrepresentation case included allegations that Evan denied getting paid commissions. It was settled for $80K. Again, the customer had sought just $5K.

March 2020: Alleging that their signatures on accounts and policies Evan sold to them were forged, these investors received a $250K settlement.

February 2020: Claiming bad investment advice, this investor settled their investment losses claim for $197,500.

December 2019: Alleging the forgery of a signature, these customers settled for $250K.

Charles Evan worked forty-one years in the industry. Other firms where he used to be registered include MSI Financial Services, New England Securities, Manequity, GR Phelps & Co., PML Securities, Capital Analysts, and Baystate Wealth Management. 

What Can Our Experienced Investment Loss Lawyers Do for You?

SSEK Law Firm would like to offer you a free consultation if you suffered losses while working with former MML Investors Services broker Charles Evan. We can help you assess whether you have a valid complaint to pursue damages against this brokerage firm.

Should we agree to work together, our securities lawyers and financial fraud lawyers can conduct the required due diligence and legal work to build a solid case on your behalf and file your investment claim in FINRA arbitration. We will represent you before the arbitration panel and fight for your financial recovery.

Our FINRA attorneys have helped thousands of investors recover millions of dollars over the years. Call SSEK Law Firm at (800) 259-9010 today.