Securities Arbitration Lawyers BlogFINRA Arbitration Award Against Citizens Securities
An elderly retiree has been awarded $152,382.41 in compensatory damages and attorneys’ fees of $48,762.37 in a FINRA arbitration against broker-dealer Citizens Securities relating to the sale of Colorado Bankers’ annuities. Most of the FINRA arbitration fees were to be paid by the broker-dealer.
The action resulted from the client’s purchase of Colorado Bankers’ Life annuities. In the arbitration, the retiree’s legal counsel argued that Citizens Securities violations included breach of contract and warranties, promissory estoppel; violation of state securities statutes; state insurance statute violations; breach of fiduciary duty; claims under common law; and vicarious liability.
Citizens Securities heavily promoted these annuities, offering high commissions and incentives to brokers for selling them. But when North Carolina regulators seized company assets, investors’ money was frozen and unavailable. Most were elderly retirees and investors who bought Colorado Bankers’ Life annuities for the income from the dividends and were then left without that income.
Liability For Unsuitable Investment Advice
Brokers selling these annuities allegedly failed to make full disclosure, including some publicly available information about both the company and its leadership, Greg Lindberg. Had they disclosed this information, the investors may have been able to exit the Colorado Bankers’ Life annuity investments prior to their funds being frozen.
Under FINRA’s rules broker-dealers are responsible for their brokers’ activities, including selling financial products, while registered with the firms. Therefore, financial responsibility for such failures frequently falls to the broker-dealers, especially in cases like these. Colorado Bankers’ Life went into court-ordered liquidation as of November 30, 2024.
Colorado Bankers’ Life is one of many companies owned by Greg Lindberg, the disgraced financier who also owned Northstar Bermuda, among others. Even after his conviction and jail sentence, he has used litigation to stall many of the legal proceedings he’s involved with.
Despite knowing that Lindberg was, in fact, in considerable legal trouble, Citizens’ Securities sold Colorado Bankers’ Life investments anyway, leading to considerable losses for its customers. With the company in liquidation, the next place to attempt recovery is to pursue the broker and broker-dealer responsible for selling the annuity and not disclosing that the company was in trouble.
Did You Invest With Colorado Bankers’ Life?
Silver Law Group represents investors in securities and investment fraud cases. 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 until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.