Abern Barred by FINRA for Failing to Cooperate

FINRA made a request to meet but Andrew Abern was a no show.

The Financial Industry Regulatory Authority (FINRA) took decisive action in 10/15 against former Dalton Strategic Investment Services broker, Andrew Abern, for failing to cooperate with their investigation. Specifically, Abern did not appear at a scheduled FINRA on-the-record interview. FINRA was investigating allegations that Abern recommended a customer refinance his home and use the proceeds toward the purchase of variable annuities. This ban means that he can no longer have any contact or activity with FINRA firms.

Long history of questionable conduct

Abern has been in the securities industry for nearly 30 years, most recently registered with Dalton Strategic Investment Services Inc. in Coral Gables, FL, from 02/10-09/14. Before his time with Dalton, he was registered with the following FINRA companies: Direct Capital Securities (Coral Gables, FL), Cambridge Legacy Securities (Coral Gables, FL), IMS Securities (Houston, TX), Woodbury Financial Services (Oakdale, MN), Securities America (Lavista, NE), and Ogilvie Security Advisors Corp (Chicago, IL).

Failing to cooperate with a FINRA investigation is a serious offense.  As part of rule 8210, a broker is obligated to provide requested information or testimony during a FINRA investigation. Failing to do so most often results in a permanent bar from all FINRA activity.  The FINRA investigation that prompted the disciplinary action involved allegations that Abern provided customers with misinformation on their variable annuity expense disclosure forms. He also advised a client poorly regarding refinancing a mortgage as mentioned earlier.

An investment broker is responsible for assessing a customer’s risk and making investment recommendations based on this risk portfolio. The broker is obligated to also determine whether a particular transaction is suitable for a particular client, using factors like age, other investments, investment experience, liquidity needs, and risk tolerance. If a broker fails to adequately protect and advise a client and puts their investments at a higher risk than is appropriate, the broker is subject to FINRA investigation and possible sanctions.

Andrew Abern received many sanctions and fines before this incident as well (12 disclosure incidents in total) and he has settled claims totaling nearly $500,000. Many of these claims relate to complex life insurance products including variable universal life policies.

FINRA frequently has jurisdiction over the sale of variable life insurance products which are tied to the value of the stock market. Variable life insurance and variable universal life policies are frequently difficult to understand but can be high commission products for the brokers who sell them.

You can recover your lost investments

If you think that you may be the victim of securities fraud, you should make contact with an attorney. Silver Law Groups specializes in national securities arbitration and investment fraud cases and has a proven track record of helping clients recover lost investment funds. Our expert team of lawyers is committed to working on your behalf to recover funds that may have been lost by a broker who has misused your trust and failed at his/her ethical and professional obligation.

Silver Law Group works on a contingency fee basis, so we only get paid if we help you recover lost funds. Call us today at 1-800-975-4345 for more information or to schedule a time for a free consultation.