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Written by 5:49 pm FINRA SEC Sanctions, Securities Fraud Articles

Northwestern Mutual Investigation 

Northwestern Mutual Investigation, featured by top securiteis fraud attorneys, the White Law Group

The White Law Group is investigating potential claims involving Northwestern Mutual Investments Services.

The White Law Group is investigating potential claims involving Northwestern Mutual and the liability it may have for failure to supervise its sales agents and advisors. If a firm fails to supervise its employees, it may be held responsible for investment losses through FINRA Arbitration. 

Northwestern Mutual Investment Services (CRD#: 2881/SEC#: 801-8095,8-1408) is a broker-dealer based in Milwaukee, Wisconsin.  The firm has 8 regulatory actions, according to its FINRA broker check report. 

Northwestern Mutual – in the News 

According to the Milwaukee Journal Sentinel on March 22, 2023, four Northwestern Mutual brokers, including the chief of its network office in northern New England, are reportedly under investigation by New Hampshire authorities for allegedly misleading consumers, among other potential violations of state law.   

The four agents, all of whom continue to represent Northwestern Mutual, have reportedly been under investigation since September 2022, according to the Financial Industry Regulatory Authority (FINRA). FINRA is the regulator who oversees brokers selling investments. The agents are reportedly among a group including at least two former Northwestern Mutual brokers that the state has been investigating for nearly two years for similar allegations.  

Misleading Marketing Practices 

The New Hampshire Bureau of Securities Regulation is reportedly investigating the managing partner of Northwestern Mutual Northern New England for failing to supervise representatives in his office who sent marketing emails to consumers allegedly containing misleading statements, according to FINRA. The two former agents who were terminated by Northwestern Mutual also reportedly worked for him.  

Three other agents with ClearView Financial Group, a firm contracted through Northwestern Mutual to sell its  products and services, are also reportedly under investigation by the New Hampshire Insurance Department. According to the article, those under investigation continue to sell Northwestern Mutual products. 

State authorities alleged that all three used an unapproved form to obtain client data for the purpose of applying for non-variable life insurance policies. One of the three agents is also being investigated over allegations of sending misleading marketing emails. 

Insurance and investment brokers, including the ones under investigation, are not direct employees of Northwestern Mutual, but contractors who are licensed to represent and sell Northwestern Mutual products. Agents receive an upfront commission for their sales while their supervisors and the firm take a portion of the profit.  

Regulators Sanction Northwestern Mutual for Failure to Supervise Broker

June 2020 – FINRA censured and fined Northwestern Mutual $350,000 for allegedly failing to prevent a former broker from pocketing hundreds of thousands of dollars from client accounts. 

The broker, Sampson Pearson, reportedly was tried in federal court in North Carolina on charges that he stole $570,000 from his former clients. He was reportedly an independent contractor in North Carolina for Northwestern Mutual Investment Services from 2001 to 2017 FINRA reportedly barred Pearson from the securities industry in 2017 after its investigation. Sampson Pearson Jr. Broker Investigation 

 Pearson was charged with mail fraud, aggravated identity theft and filing false tax returns through an alleged annuities fraud scheme affecting 10 Northwestern Mutual Investment clients. The money was allegedly taken from client annuities through withdrawals and fraudulent loans.

September 2009 – FINRA sanctioned Northwestern Mutual auction rate securities (ARS). Northwestern paid a fine of $200,000 and agreed to initiate or complete offers to repurchase ARS sold to their customers where the auctions for the ARS had failed — approximately $103 million for Northwestern Mutual. Northwestern was one of 15 firms sanctioned in connection with the sale of auction rate securities (ARS) that became illiquid when auctions froze in February 2008.  FINRA Announces Agreements with Three Additional Firms 

Broker Misconduct and Customer Complaints  

All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.  There have been several cases of registered representatives employed by Northwestern Mutual who were allegedly involved in broker misconduct and fraudulent activities. When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.  

 November 2021 FINRA reportedly barred Northwestern Mutual advisor Roderick Whited for allegedly converting funds after an investigation. Whited, of Gainesville, FL, allegedly converted $44,170 in charitable donations from fundraising events hosted by his branch office at his member firm. According to FINRA, rather than transmitting the funds to a pediatric cancer charity, as intended by the donors, Whited allegedly caused the donated funds to be deposited into his personal bank account to pay for his own personal expenses. After the firm discovered that Whited took these donations, it directed him to make repayment. Subsequently, Whited repaid the charity $35,150.19. CFP Board Reportedly Sanctions Advisor Roderick L. Whited after FINRA Bar   

September 2021 – The SEC bars former Northwestern Mutual broker after numerous regulatory events including criminal fraud charges. This followed FINRA’s bar of the representative after he reportedly disclosed that criminal felony charges were pending against him for, among other things, theft and fraudulent sales practices.

May 2019 – Fidelity Masonic Temple Association, Inc. reportedly filed a complaint against a Northwestern Mutual advisor in Connecticut state court, alleging that, from at least 2016 to 2019, the agent purportedly converted approximately $100,000 from the Association when he allegedly served as its treasurer, unbeknownst to the Firm, according to FINRA. The rep was reportedly affiliated with Northwestern Mutual Investment Services in Norwalk, CT from 2010 until 2019 when he left the firm after allegations. 

FINRA Claims to Recover Investment Losses  

The White Law Group represents investors in FINRA claims against their broker dealers. If you have suffered losses due to broker negligence or broker fraud, we can help. Our firm can evaluate the strength of your case, draft a well-structured statement of claim that accurately presents your allegations of fraud and desired damages, and provide representation during the arbitration hearing by presenting evidence and making compelling arguments on your behalf. Additionally, an attorney can engage in negotiation efforts for a potential settlement before the arbitration process begins. Opting for our securities attorneys will ensure that your rights are safeguarded throughout the arbitration process, maximizing your likelihood of achieving a favorable resolution. 

If you have concerns regarding investments with Northwestern Mutual Investment Services, 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 dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.                  

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.                   

With over 30 years of securities law experience, The White Law Group can help you recover your investment losses.                   

With offices in Seattle, Washington and Chicago, Illinois, the firm reviews securities fraud cases throughout the country. For more information on The White Law Group, please visit https://whitesecuritieslaw.com.           



Tags: , , , Last modified: August 22, 2023