Securian Financial Gets Popped for Nearly $2.4M
A Financial Industry Regulatory Authority (FINRA) arbitration panel in Detroit, Michigan handed down an award against Securian Financial Services Incorporated ordering them to pay the Claimants nearly $2.4 million in compensatory and other damages.
This was a case that was filed in August 2010, asserting various causes of action including misrepresentation, failure to supervise, repondeat superior, unauthorized transactions and suitability, among other things. The Claimants sought $4.2 million in compensatory damages related to various failed investments in real estate limited partnerships which were inconsistent with their investment objectives and tolerance for risk. Furthermore, the broker sold these products through a business outside the firm. It is a firm and industry requirement for brokers to have approval of any outside activities or businesses, since firms can be held liable for monetary losses incurred by investors who have not been properly advised that those activities are separate from the firm.
During the evidentiary hearing, it was announced that the Claimants had settled with the broker named in the case, Salvatore Joseph Durso. Following a three day evidentiary hearing on the merits, the arbitration panel went into executive session to consider all of the oral and documentary evidence before rendering its decision. Thereafter, the panel concluded that Securian Financial Services Incorporated was liable and ordered to pay the Claimants $2,375,000 in compensatory damages, in addition to post award interest on that sum at the statutory rate of interest from the date of service of the award until it is paid in full. Securian was also assessed the entire amount of $8,400 in forum fees for the arbitration. (FINRA# 10-03642; Frank M. Taylor and Taylor Affiliates LLC v. Securian Financial Services Incorporated and Salvatore Joseph Durso).