Written by The White Law Group• April 4, 2022• 2:43 pm• Blog, Current Investigations

Francis Velten Jr. Accused of Variable Annuity Switching

FINRA Complaint: Florida Broker Francis Velten Jr. Accused of Variable Annuity Switching, Churning Accounts

According to the Financial Industry Regulatory Authority (FINRA), Francis Velten (CRD#: 2291911) was named a respondent in a FINRA complaint alleging that he failed to respond in any way to FINRA’s requests for information in connection with its investigation into an allegation that he churned and flipped his elderly customers’ accounts at his member firm, allegedly encouraging them to surrender their annuities and sell mutual fund holdings away from the firm and use the proceeds to purchase “bonus” annuities.

According to his FINRA BrokerCheck report, Velten is not currently registered as a broker, but was reportedly affiliated with the following firms during his career in the securities industry:

01/27/2020 – 04/28/2020, AMERIPRISE FINANCIAL SERVICES, LLC (CRD#:6363), New Port Richey, FL,

07/27/2018 – 01/27/2020, INDEPENDENT FINANCIAL GROUP, LLC (CRD#:7717), NEW PORT RICHEY, FL

08/18/2006 – 08/07/2018, SUMMIT BROKERAGE SERVICES, INC. (CRD#:34643), NEW PORT RICHEY, FL

04/24/2002 – 09/13/2006, GUNNALLEN FINANCIAL, INC (CRD#:17609), NEW PORT RICHEY, FL

Velten reportedly has a history of investor disputes, according to his broker record. He has 9 customer complaints filed against him during his career in the securities industry according to his FINRA broker report. Allegations include unsuitable recommendations, unsuitable annuity sales, variable annuity switching, among others.

Overselling variable annuities or variable annuity switching can be a problem and is usually not in the best interest of the investor.

For a client to truly benefit from investing in variable annuities, it is the long term that pays off. Sometimes a broker may entice his client to sell variable annuities to roll into another annuity for the sole purpose of collecting commissions.

To learn more, see Variable Annuities Investigation, Variable Annuity Switching – Securities Fraud Lawyer

Potential Lawsuits to Recover Financial Losses

The White Law Group is investigating potential securities fraud lawsuits regarding the liability that Velten’s employers may have for failure to properly supervise him.

When brokers and registered investment advisors violate securities laws, such as churning accounts or making unsuitable investment recommendations, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states including Florida. Our attorneys have recovered millions of dollars from many brokerage firms in the past.