Written by The White Law Group• February 25, 2025• 8:13 pm• Investment Loss Recovery

MML Investor Services: Customer Dispute

The White Law Group Files FINRA Claim Against MML Investor Services LLC for Unsuitable Investments and Failure to Supervise

The White Law Group has filed a FINRA arbitration claim on behalf of a family in Niceville, Florida, against MML Investor Services LLC. The claim alleges violations including common law fraud, breach of fiduciary duty, negligence, and failure to supervise.

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According to the claim, an MML Investor Services financial advisor recommended a high-risk and unsuitable investment strategy, leading to significant losses for the claimants. The advisor allegedly concentrated the majority of the family’s investment account in equities, primarily exchange-traded funds (ETFs), with only a small allocation to fixed-income products. Some of the specific securities in the portfolio included:

NAVIGATOR TACTICAL FIXED INCOME CL I
INVESCO EXCH TRADED FD TR II NASDAQ 100
ISHARES CORE S&P SMALL-CAP E
ISHARES MSCI EUROZONE ETF
ISHARES S&P SMALLCAP 600 VALUE INDEX
ISHARES TR EAFE VALUE ETF
ISHARES TR EXPANDED TECH
ISHARES TR RUS TP2000 GR ETF
ISHARES TR US AER DEF ETF
SPDR SER TR S&P BK ETF
SPDR SER TR S&P HOMEBUILD
SPDR SER TR S&P REGL BKG
SPDR SER TR S&P RETAIL ETF
SPDR SER TR S&P 400 MDCP VAL
VANGUARD CONSUMER DISCRETIONARY ETF
FRANKLIN TEMPLETON ETF TR FRANKLIN FTSE

Additionally, the claim alleges that the advisor recommended the claimant convert a term life insurance policy into a whole life policy with Mass Mutual Life Insurance. The advisor also encouraged the family to open whole life insurance policies for each of their six minor children, further adding to their financial burden.

The claim seeks damages between $100,000 and $500,000.

Failure to Supervise – MML Investor Services LLC

Brokerage firms are required to conduct due diligence and ensure that investment recommendations align with an investor’s financial goals and risk tolerance. Firms must also supervise their financial advisors to prevent misconduct and ensure compliance with FINRA regulations.

D. Daxton White, managing partner of The White Law Group, stated, “Many investors may have suffered substantial losses due to MML Investor Services’ lack of supervision and may not even realize they have recovery options.”

When brokerage firms fail to monitor their advisors properly, they can be held responsible for any resulting losses in a FINRA arbitration claim.

FINRA Arbitration Attorneys – The White Law Group

FINRA Dispute Resolution provides an arbitration forum for investors seeking to recover losses caused by broker misconduct. This process allows investors to pursue claims without the need for litigation in court.

The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. Since its founding in 2010, the firm has handled over 800 FINRA arbitration cases, advocating for investors nationwide.