2 Agents Fined For Fixed Index Annuities
|By Times Record, Fort Smith, Ark.|
|McClatchy-Tribune Information Services|
The field marketing organization sent direct-mail invitations targeting senior citizens at or close to the age to begin drawing
Seminar attendees could arrange individual meetings with the agents. A medically retired 64-year-old resident opted for an individual meeting, and Coffman and Dodds met with him and his wife at their home. The man and his wife told Coffman and Dodds that they were looking for a second income stream to pay the wife's health insurance premiums until she became eligible for
Coffman told the man that his securities were not totally safe from a judgment creditor, and Dodds told the man that one of his securities accounts was not doing well. Coffman and Dodds recommended that the man liquidate about 60 percent of his securities holdings and replace them with an equity indexed annuity that would effectively tie his money up for 14 years, the release states.
At first, the man agreed, but when he realized that there was no income stream and that his money would be tied up for quite some time, he called staff at the
Arkansas Securities Commission A. Heath Abshure found that Coffman and Dodds acted as unregistered investment advisers in recommending that the man sell securities and replace them with an equity indexed annuity. Abshure also found that the way in which this investment came about -- hosting a seminar about
The actions of Coffman and Dodds violated the Arkansas Securities Act as an "act, practice or course of business that operates or would operate as a fraud or deceit" upon another person, according to the release.
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