Mass. Securities Regulators Reportedly Fine MLS $250,000 for Failure to Supervise Broker Charles J. Evan
According to a consent order on August 16, 2022, Massachusetts Secretary of the Commonwealth William Galvin has fined MLS Investment Services, a subsidiary of Mass Mutual $250,000 over its failure to supervise broker Charles J. Evan (CRD #836083).
Evan allegedly pressured clients into unsuitable high-commission insurance products for his own financial benefit, according to the consent order.
MLS Investors Services reportedly agreed to pay the fine and disgorge any profits related to the allegedly unlawful actions of the representative, and agreed to conduct an internal review of its supervisory procedures, according to the order.
The Massachusetts regulator has also reportedly filed a separate complaint against Evan, seeking to bar him permanently in Massachusetts. Evan, who was reportedly fired in 2019 and barred by the Financial Industry Regulatory Authority (FINRA), allegedly aggressively sold variable annuities to his customers, while purportedly claiming not to be receiving commissions for the sale of those products, according to the regulator.
The state regulator claims that Evan “perpetrated a deceptively simple scheme” by allegedly subjecting his clients to “high-pressure boiler room sales tactics and outright fraudulent misstatements, misrepresentations, and omissions while advising those clients to purchase high commission products intended solely to generate large profits for himself.”
Massachusetts regulators are also seeking an order to require Evan to pay restitution to investors for their losses and to pay a fine.
Evan was reportedly registered with the following firms during his career, among others:
03/25/2017 – 11/13/2019, MML INVESTORS SERVICES, LLC (CRD#:10409), WELLESLEY, MA,
01/02/2015 – 03/25/2017, MSI FINANCIAL SERVICES, INC. (CRD#:14251), WELLESLEY, MA
05/01/2002 – 01/02/2015, NEW ENGLAND SECURITIES (CRD#:615), WELLESLEY, MA
02/01/2002 – 04/18/2002, MML INVESTORS SERVICES, INC. (CRD#:10409), SPRINGFIELD, MA
According to his broker record Evan has 11 customer complaints filed against him. Allegations include unethical sales tactics, misrepresentation and unsuitable investments, among others.
To learn more, please see: FINRA Reportedly Bars Advisor Charles J. Evan after Allegations of Inappropriate Insurance Sales
Filing a Complaint against your Brokerage Firm
Brokerage firms are required to perform due diligence on any offering they recommend and to ensure that all recommendations made are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives.
If a firm fails to perform due diligence or makes an unsuitable recommendation, the broker-dealer can be held responsible for any losses in a FINRA arbitration claim.
FINRA can help resolve problems and disputes through two non-judicial proceedings: arbitration and mediation. FINRA’s Dispute Resolution forum handles nearly all of the securities-related arbitrations and mediations in the United States.
If you suffered losses investing with Charles Evan and MLS Investors Services and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.
Tags: Charles Evan Investigation, Charles Evan MLS Investors, Charles Evan variable annuity fraud, Charles J Evan, Charles J evan SEC charges, Charles J. Evan FINRA, MLS Investors Lawsuit, MLS Investors Mass Securities order Last modified: December 6, 2022