FINRA Hits Voya Financial Advisors with $2.75-Million Fine

We recently filed a FINRA arbitration on behalf of a retired school teacher in New Orleans who had been sold annuities by a Voya (formerly ING) broker on the premise that a 7% return was “guaranteed.” Anytime our client questioned why her statement showed that the value of her annuity was decreasing, she was reassured—on recorded phone lines, no less—that there was nothing to worry about.

When it was later revealed that of course there was no guarantee, and that the broker had completely mispresented—and possibly misunderstood—the annuity she had sold to our client, the company refused to do the right thing, offering only “nuisance value” to get her to withdraw her complaint.

So now we will prosecute the claim on behalf of our client, seeking to recover not only her losses but also the costs of the arbitration and our attorney’s fees. In light of the evidence, it never should have come to this.

On the heels of our claim, FINRA announced a $2.75 million fine against Voya resulting from its unsuitable sales of annuities to retail investors like our client. Voya allowed—and encouraged by tying the annuities to sky-high commissions—its brokers to sell complex annuities to its customers without regard for their financial status, investment objectives, risk tolerance and investing experience. It also failed to properly supervise its brokers who were selling them.

Annuities have been making headlines lately, and not the good kind. The New York Times recently published an article called “Even Math Teachers Are at a Loss to Understand Annuities.” It explains that while annuities may sound good, they are almost never a good solution. Securities expert consultant Craig McCann puts it simply: “No agent selling these or investors buying these has the foggiest idea of how these work,” and they “never” make sense, even for very risk-averse investors.

If you have been sold an annuity and are concerned that it may not have been suitable for you, or that its risks were not honestly disclosed, please contact a securities attorney at The Galbraith Law Firm. Call 212.203.1249 or email kevin@galbraithlawfirm.com for a free confidential consultation regarding your legal rights.