MML Investors Services LLC – Broker Misconduct and Regulatory Review
The White Law Group is investigating potential claims involving MML Investors Services LLC (CRD#: 10409 / SEC#: 801-44264, 8-27250) for alleged broker misconduct and supervisory failures.
Headquartered in Springfield, Massachusetts, MML Investors Services is a dual-registered broker-dealer and investment advisory firm. The firm reportedly managed $58.8 billion in assets and employed 6,978 advisors as of 2022. It generated approximately $1.57 billion in revenue that year.
MML Investors Services – Regulatory History
According to FINRA BrokerCheck, MML Investors Services has 30 disclosure events, including 27 regulatory actions and at least one customer arbitration. These events suggest a history of compliance failures and supervisory lapses.
Key FINRA Sanctions and Regulatory Actions
- November 11, 2024 – FINRA fined MML Investors Services $275,000 for supervisory failures related to transaction reporting. The firm allegedly failed to maintain adequate systems and procedures to comply with reporting obligations and agreed to the fine without admitting or denying the findings.
- November 19, 2024 – FINRA fined and censured the firm $700,000 for inadequate supervision of consolidated reports. From March 2017 to April 2020, MML failed to detect fictitious account entries by one representative due to deficient oversight.
- May 16, 2023 – FINRA censured and fined MML $250,000 for failing to timely update Forms U4 and U5, impacting the reporting of 39 disclosable events.
- December 2021 – The firm paid $617,726 in restitution for 529 plan overcharges due to unsuitable share-class recommendations and lack of proper supervisory systems.
- March 2020 – FINRA fined the firm $75,000 for failing to restrict terminated employees from accessing nonpublic client information in violation of Regulation S-P.
- May 2016 – As part of FINRA’s mutual fund waiver sweep, MML paid nearly $1.86 million in restitution after overcharging 792 clients by failing to apply appropriate mutual fund waivers.
- August 2013 – MML was fined $125,000 and ordered to pay $760,000 in restitution for supervisory failures related to “selling away.” Reps sold unapproved ICI promissory notes, which turned out to be part of a Ponzi scheme.
- October 2021 – Massachusetts regulators fined MML $4.75 million for failing to supervise brokers’ social media use and an additional $750,000 for not registering 478 agents.
Broker Fraud and Customer Complaints
- August 2022 – MML was fined $250,000 for failing to supervise former broker Charles Evan, who sold high-commission, unsuitable insurance products. Evan was later barred by FINRA and Massachusetts regulators.
- May 2022 – Ex-MML broker Adam Belardino was charged with wire fraud after allegedly embezzling $313,000 from a senior client. FINRA had previously barred Belardino for failure to cooperate in its investigation.
- November 2018 – Broker Oscar Francis was sentenced to 41 months in prison for defrauding 11 investors. He allegedly solicited clients to invest in a fraudulent entity he controlled and misused the funds for personal expenses.
Failure to Supervise – MML Liability for Broker Misconduct
Brokerage firms have a legal duty to supervise their financial professionals. If a firm fails to detect or prevent broker misconduct, it can be held liable for investor losses through FINRA arbitration.
Investors who were misled, sold unsuitable products, or defrauded by an MML broker may be eligible to recover losses.
Concerned About Your MML Investments?
If you believe you’ve suffered losses due to MML Investors Services or one of its advisors, call The White Law Group at 888-637-5510 for a free consultation.
We represent investors nationwide in FINRA arbitration claims against brokerage firms for fraud, negligence, or failure to supervise.
About The White Law Group
The White Law Group is a national securities arbitration and investor protection law firm with offices in Chicago, IL and Seattle, WA. Since 2010, the firm has handled more than 800 FINRA arbitration cases, recovering millions for investors in claims involving:
- Broker fraud
- Unsuitable investments
- Churning
- Unauthorized trading
- Selling away
- Failure to supervise
Frequently Asked Questions : MML Investors Services
1. Can I sue MML Investors Services for investment losses?
Possibly. If you invested with MML and suffered losses due to fraud, unsuitable investments, or misrepresentations, you may be able to file a FINRA arbitration claim for recovery.
2. What is selling away and how does it affect investors?
Selling away occurs when a broker sells investments not approved by the firm. This exposes investors to unvetted and often risky products. MML has been sanctioned for failing to supervise such activities.
3. What does it mean if a broker is barred by FINRA?
A FINRA bar means the individual is permanently prohibited from working in the securities industry. Multiple barred brokers have been associated with MML, raising concerns about the firm’s oversight.
