Wolper Law Firm, P.A., Files Arbitration Claim Against Sterne Agee Financial Services, Inc., and Pennsylvania Financial Advisor, Richard Wesselt
Jul 3, 2019
Wolper Law Firm P.A.
Fort Lauderdale, FL (Law Firm Newswire) July 03, 2019 – Wolper Law Firm, P.A. announces that it has filed an arbitration claim against Sterne Agee Financial Services, Inc. and its former registered representative, Richard Wesselt, before the Financial Industry Regulatory Authority (“FINRA”).
The FINRA arbitration was filed on behalf of five (5) former clients of Sterne Agee and Richard Wesselt and alleges damages between $5 million and $10 million. The allegations of misconduct are based on unsuitable investment advice and insurance churning. Richard Wesselt has been in the securities and insurance industry for many years. He was previously a registered Financial Advisor with Sterne Agee Financial Services and O.N. Equity Sales Co. Richard Wesselt was also an authorized and appointed agent of Ohio National Life Insurance Co., an affiliate of O.N. Equity Sales Co.
It is alleged that Richard Wesselt utilized his position as a Financial Advisor to recommend an investment strategy that he described as “infinite banking.” “Infinite banking” is a controversial strategy that involves purchasing permanent insurance products and allowing the cash value to accrue over time so that it may be used for retirement and to meet personal expenses.
In furtherance of the “infinite banking” strategy, Mr. Wesselt recommended that the clients collectively purchase more than $35 million worth of life insurance (principally whole-life policies) issued by Ohio National Life Insurance Co. with aggregate annual premium payments of more than $250,000. It is alleged that the level of insurance recommended was exceedingly high and both unnecessary and unsuitable.
In order to fund premium payments, it is alleged that Richard Wesselt recommended that the clients take loans against the cash value of existing policies, roll-over 401(k) accounts, withdraw money from Individual Retirement Accounts (IRA) and liquidate 529 College Savings Plans. These recommendations eroded the value associated with the policies and rendered them unsustainable. Many of the clients’ policies have lapsed or have been terminated. Other policies are significantly encumbered by loans to the point that they may never become self-sustaining. It is alleged that as a result of these recommendations, the clients have realized damages measuring in the millions and lost the opportunity to invest those funds in a suitable and appropriate investment strategy.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at mwolper@wolperlawfirm.com.
To learn more, visit https://wolperlawfirm.com/
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Matt Wolper
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