August Anthony Ferretti (CRD# 6781808) is a Bankers Life Advisory Services, Inc. financial advisor and Bankers Life Securities, Inc. stockbroker based in Parsippany, New Jersey. Our firm is investigating investor complaints and a pending civil lawsuit alleging that Mr. Ferretti misrepresented annuity terms and facilitated insurance purchases without proper customer authorization or understanding.
Financial Advisor’s Career History
According to his FINRA BrokerCheck report, August Anthony Ferretti has spent his securities and advisory career with affiliates of Bankers Life in New Jersey and Illinois. He has been registered with Bankers Life Securities, Inc. since April 2017 and with Bankers Life Advisory Services, Inc. since September 2018. His primary branch office is located in Parsippany, New Jersey, although his firms list main office addresses in Chicago, Illinois.
Mr. Ferretti has also reported a long-standing insurance career with Bankers Life & Casualty, where he has worked as an insurance agent and unit sales manager since 2002. In addition to his investment-related roles, he discloses several outside business activities, including non-variable insurance sales, online sales of collectibles, authorship of a self-published e-book, and ownership of OBX Luxury Rentals LLC, a vacation-rental venture in Kitty Hawk, North Carolina. These activities are reported as non-investment-related.
August Anthony Ferretti Fraud Allegations and Investor Complaints Explained
FINRA BrokerCheck discloses one pending civil event and one settled customer dispute involving August Anthony Ferretti. While the firms involved have denied liability and the civil matter remains unresolved, the disclosures raise concerns about the sale and representation of annuity and insurance products to retail investors.
Pending New Jersey Civil Lawsuit Alleging Misrepresentation and Unauthorized Insurance Purchases
In November 2023, a client, Angelo Gencarelli, filed a civil lawsuit in the Superior Court of New Jersey, Law Division, Essex County (Docket No. ESX-L-6940-23) naming August Ferretti as a defendant. The case arises out of fixed annuity and insurance transactions conducted through Bankers Life affiliates.
According to the disclosure, Mr. Gencarelli alleges:
- Insurance policies were purchased in his name without his knowledge.
- The terms of an annuity contract were misrepresented to him by August Ferretti.
- The matter originated with a complaint to the New Jersey Department of Insurance, followed by written complaints received in September and October 2023.
- Relief sought includes monetary damages, attorneys’ fees and costs, prejudgment interest, and other equitable relief.
The product at issue is a fixed annuity/insurance product sold through Bankers Life Securities, Inc. and Bankers Life and Casualty Company. After reviewing the allegations, Bankers Life Securities and Bankers Life and Casualty reported that they found no merit to the claims and denied the allegations; however, the civil action remains pending, and no court has yet entered a final judgment.
Key details of the pending civil event (as reported to FINRA):
- Type of event: Civil – Pending
- Court: Superior Court of New Jersey, Law Division, Essex County
- Docket/Case Number: ESX-L-6940-23
- Filing date: November 1, 2023
- Product type: Fixed annuity / insurance
- Allegations: Unauthorised insurance policy purchases and misrepresentation of annuity terms
- Relief sought: Monetary damages, attorneys’ fees, costs, prejudgment interest, and other equitable relief
- Current status: Pending; no limitations or restrictions reported on Mr. Ferretti’s registration
Settled Customer Complaint Involving IRA Funds Used to Purchase an Equity-Indexed Annuity
Mr. Ferretti also reported a settled customer complaint arising from an October 2021 transaction where a client’s IRA funds were used to purchase an equity-indexed annuity issued by Bankers Life and Casualty Company.
According to the disclosure:
- On February 11, 2022, the firm received a written complaint from a client alleging she was unaware that her IRA funds had been used to purchase a Guaranteed Lifetime Income Annuity (GLIA).
- The client asserted that she wanted the funds invested in a managed advisory account, not an annuity, and requested that the annuity purchase be voided and the funds transferred to an outside financial institution.
- Bankers Life and Casualty Company reviewed the transaction and concluded that the annuity was suitable, but as a business accommodation allowed the client to “free-look” the annuity even though the request came after the free-look period had expired.
- The annuity itself was not a security, but because it was funded through the sale of securities recommended by a Bankers Life Securities representative, the firm reported the complaint to FINRA.
Key details of the settled customer dispute:
- Type of event: Customer dispute – Settled
- Firm(s) involved when conduct occurred: Bankers Life Securities, Inc. and Bankers Life and Casualty Company
- Product type: Equity-indexed annuity purchased with IRA funds
- Alleged damages: $9,174
- Settlement amount: $9,174 (no contribution reported by the individual representative)
- Complaint received: February 11, 2022
- Status date: March 7, 2022
- Nature of complaint: Client stated she did not understand that her IRA funds were being used to purchase an annuity and believed the funds would go into a managed advisory account.
Mr. Ferretti’s BrokerCheck statement indicates that he discussed a range of investment options with the client, that the client originally agreed to annuitize a portion of her assets, and that she subsequently changed her mind and transferred the account to another firm without incurring fees or withdrawal charges.
Summary of Disclosures
Based on the FINRA BrokerCheck report, the material disclosures involving August Anthony Ferretti include:
- One pending civil event in New Jersey state court alleging:
- Unauthorized purchase of insurance policies, and
- Misrepresentation of fixed annuity terms to a retail client.
- One settled customer dispute involving:
- Use of IRA funds to purchase an equity-indexed annuity,
- A client who believed the funds would be invested in a managed advisory account,
- Alleged damages and settlement of $9,174, and
- No reported monetary contribution from Mr. Ferretti personally.
As with any FINRA disclosure, these matters involve allegations, and a pending civil action may ultimately be resolved in Mr. Ferretti’s favor or via settlement without any finding of wrongdoing. A settled complaint likewise does not necessarily constitute an admission of liability by the broker or the firm.
In light of the pending civil litigation and the previously settled customer complaint, investors who worked with August Anthony Ferretti should carefully review their annuity and insurance transactions, particularly where retirement accounts or IRA rollovers were used to fund annuity purchases, or where they feel the product’s features, risks, or liquidity constraints were not adequately explained
To obtain a copy of August Anthony Ferretti’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2010 requires brokers to “observe high standards of commercial honor and just and equitable principles of trade” in all aspects of their business. In the context of the allegations against August Anthony Ferretti, investors may argue that recommending or facilitating annuity and insurance transactions without fully explaining the product terms, or causing policies to be purchased without a client’s clear, informed consent, would violate this core conduct standard. When clients say they did not understand that their IRA assets would be tied up in annuities with specific liquidity restrictions, surrender periods, or income-rider conditions, Rule 2010 becomes central to determining whether the broker and firm acted with the fairness and integrity that the rule demands.
FINRA Rule 2111, the Suitability Rule, obligates brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer based on that customer’s investment profile, including age, financial situation, objectives, risk tolerance, and liquidity needs. When a broker recommends moving retirement funds from an advisory or brokerage account into a long-term annuity, he must understand both the product and the customer and must reasonably believe the transaction is in the client’s best interests. In disputes like those involving Mr. Ferretti, investors may contend that using IRA assets to purchase an annuity was unsuitable because the client desired a managed advisory account, more flexibility, or less complex products—and that those preferences were disregarded or overridden in favor of the annuity sale.
FINRA Rule 2020 prohibits the use of “any manipulative, deceptive or other fraudulent device or contrivance” in connection with the purchase or sale of any security. While many annuities themselves are insurance products rather than securities, FINRA may still analyze the surrounding sales practices—such as the liquidation of securities to fund an annuity, or misrepresentations about how the product works—under Rule 2020. Investors alleging that insurance policies were opened without their knowledge or that annuity terms were mischaracterized may assert that such conduct, if proven, constitutes deceptive practices under Rule 2020, especially where clients reasonably relied on the broker’s explanations when deciding to move or invest their retirement savings.
Losing your savings to a dishonest broker or advisor can be devastating, but you do not have to face it alone. Robert Wayne Pearce and his team have spent over four decades helping investors who were misled or defrauded by Wall Street firms. The Law Offices of Robert Wayne Pearce, P.A. takes cases nationwide on a contingency fee basis. You pay nothing unless we recover your losses. Call (800) 732-2889 or email pearce@rwpearce.com today for a free and confidential consultation.