Silver Law Group represents investors in arbitration claims against SagePoint Financial. Our investment fraud law firm is in the Fort Lauderdale area and we can meet with you in person to answer any questions.
Alberto Sanchez’s publicly-available FINRA BrokerCheck report lists 3 disclosures, including 2 customer disputes and 1 regulatory action.
Alberto Sanchez Indefinitely Barred By FINRA
In June, 2019, Alberto Sanchez was permanently barred in all capacities from associating with a FINRA member firm for failing to provide documents as requested by FINRA “in connection with an investigation concerning his involvement in a potential undisclosed outside business activity.”
Sanchez consented to the sanction and the entry of findings without admitting or denying the charges.
It’s not known what outside business activity caused the investigation, but brokers have been known to get into trouble for business activities separate from their job as a broker if there’s a conflict of interest or the business isn’t disclosed.
Sanchez’s BrokerCheck report lists other business activities, including being a salesperson at a health insurance company starting in 2015, a landlord of a rental property starting in 2018, and a sales representative for Creative Financial Network starting in 2015.
Alberto Sanchex Customer Disputes
Sanchez’s first customer dispute came in 2009 and involves a customer alleging that “he purchased a variable annuity expecting certain associated benefits and that those benefits are not part of his contract.” That dispute was settled and the contract was reissued with the requested benefits.
The second customer dispute was in 2011 and involves a customer allegation that Sanchez did not fully explain an investment with a limited partnership. The customer requested $100,000 of damages and the dispute was closed with no action.
Variable Annuity Problems
The customer complaint in 2009 regarding a variable annuity is not uncommon. Variable annuities are a high-fee investment that pay the financial advisor who sells them a generous commission. However, they are sometimes recommended to investors when they are unsuitable for them, or they are advised to sell one and purchase another and pay considerable surrender fees.
A variable annuity is a contract between an investor and an insurance company. The insurance company commits to make a lump-sum or periodic payment to the investor at a certain point in the future, usually when the investor retires. The variable annuity is then invested in a variety of areas, often mutual funds.
A variable annuity has two phases: accumulation and payout. During the accumulation phase, the investor makes purchase payments which are allocated to the investment option of their choice. The money put into the variable annuity will increase or decrease depending on how the chosen investment performs. Alternatively, the investor has an option to allocate the purchase payments to a fixed account, which will guarantee a rate of return by using a fixed rate of interest.
During the payout phase, the investor receives purchase payments back along with income and gains if the investment performed well. The investor can choose to receive a lump-sum payment or a stream of payments. If a stream of payments is selected, the investor can either receive those payments over a fixed period of time or indefinitely. The payout phase usually begins in retirement, but the investor can choose any time for payments to begin.
Due to the high costs and surrender charges associated with variable annuities, they are a borderline illiquid investment.
In a practice called variable annuity switching, financial advisors talk up the benefits of a new variable annuity contract compared to an existing variable annuity in an attempt to replace it. The financial advisor gets the fees and commissions of the new variable annuity, but the investor pays the price. This type of transaction, when the newly-purchased variable annuity has similar features and investment options, is prohibited by securities and insurance regulators unless the investor derives an economic benefit. A transaction like this is almost always unsuitable for the investor.
Sometimes the high fees and commissions associated with variable annuities are hidden, minimized or undisclosed, which is potentially a misrepresentation or omission of material fact.
Did You Invest With Alberto Sanchez Or SagePoint Financial?
If you have losses with Alberto Sanchez Or SagePoint Financial, we’d like to hear from you. It may be possible to recover your losses through FINRA arbitration.
Silver Law Group represents investors in securities and investment fraud cases, including cases of selling away, churning, and unsuitability. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct.
If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us unless we recover money for you. Contact us today and let us know how we can help.