Jeffrey M. Feldhusen (CRD# 5038237) is a registered representative of PFS Investments Inc. and an investment adviser representative with Primerica Advisors based in Brookfield, Wisconsin. Our firm is investigating whether his recommendations of variable annuity products and related disclosures to customers were consistent with his obligations under FINRA rules and industry standards.
Financial Advisor’s Career History
According to his FINRA BrokerCheck report, Jeffrey M. Feldhusen has spent his securities career with affiliates of Primerica and PFS Investments Inc.
- From November 2005 to December 2007, Feldhusen was registered with PFS Investments Inc. in Duluth, Georgia.
- From January 2008 to December 2009, he remained registered with PFS Investments Inc., working out of a branch office in Brookfield, Wisconsin.
- Since May 2010, he has been registered with PFS Investments Inc. as a broker in Brookfield, Wisconsin.
- In addition, since June 2017 he has been registered as an investment adviser representative with Primerica Advisors, operating from the branch office at 330 S Executive Dr., Suite 305, Brookfield, Wisconsin.
Feldhusen has passed the Securities Industry Essentials (SIE), Series 6, 26, 63, and 65 exams and is registered to conduct securities business in multiple U.S. states.
Jeffrey M. Feldhusen Fraud Allegations and Investor Complaints Explained
Feldhusen’s BrokerCheck report discloses one settled customer dispute involving variable annuity products and concerns about contract fees and market performance.
2024 Variable Annuity Fee and Market Loss Complaint (Settled)
In January 2024, customers filed a written complaint against Feldhusen’s employing firm, PFS Investments Inc., regarding variable annuity contracts. The complaint alleged that:
- The customers were not aware of the contract fees associated with the variable annuity contracts; and
- They were concerned about market losses and the performance of the contracts.
Key details from the disclosure include:
- Employing firm at time of alleged conduct: PFS Investments Inc.
- Product type: Variable annuity
- Date complaint received: January 4, 2024
- Alleged damages: Reported as $0, with the firm stating it could not make a good-faith determination that damages from the alleged conduct were under $5,000
- Disposition: Settled
- Status date (settlement date): June 19, 2024
- Settlement amount: $21,891.56
- Individual contribution: $0 (the settlement was paid without any personal contribution reported for Feldhusen)
Although the disclosure does not specify that the variable annuity recommendations were formally adjudicated as unsuitable investment recommendations, the allegations focus on disclosure of contract fees and the impact of market performance on these long-term products—issues that often overlap with suitability, cost transparency, and risk disclosure obligations under FINRA rules.
Summary of Feldhusen’s Disclosure Record
Based on the current BrokerCheck report:
- Feldhusen has one reported customer dispute.
- The matter is listed as final and settled, not pending.
- No regulatory actions, criminal events, employment terminations, or bankruptcy disclosures are reported at this time.
Customer Dispute Summary (Bullet List)
- Type of event: Customer dispute – written complaint
- Product: Variable annuity
- Core allegations: Inadequate disclosure of contract fees; concerns about market losses and performance
- Forum: Firm-level complaint (not identified as arbitration or civil litigation)
- Status: Final – settled
- Settlement: $21,891.56 paid to resolve the matter; no individual contribution reported for Feldhusen
Investors who believe they were not fully informed about the costs, risks, or performance characteristics of their variable annuities may have potential claims for recovery depending on their individual circumstances.
To obtain a copy of Jeffrey M. Feldhusen’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111 (Suitability) is central to allegations involving variable annuity recommendations that may not match a customer’s profile or expectations about fees and market risk. Under FINRA Rule 2111, a broker must have a reasonable basis to believe that a recommended transaction or investment strategy—such as purchasing or holding a variable annuity—is suitable for the customer based on factors like age, financial situation, tax status, investment objectives, risk tolerance, time horizon, and liquidity needs. In a case like Feldhusen’s, the concern is that if customers were not fully aware of contract fees and the potential impact of market fluctuations on the value of the annuity, the broker may not have satisfied both reasonable-basis suitability (understanding the product and its costs) and customer-specific suitability (ensuring the product fit the investor’s particular circumstances).
FINRA Rule 2330 (Members’ Responsibilities Regarding Deferred Variable Annuities) imposes additional obligations specific to variable annuity transactions. It requires firms and associated persons to make a determination that a recommended deferred variable annuity exchange, replacement, or purchase is suitable for the customer and to consider factors such as surrender charges, loss of benefits, increased fees, and product features before moving forward. If customers later complain that they did not understand contract fees or the performance characteristics of their annuity, arbitrators may examine whether the broker and firm complied with Rule 2330’s heightened review, documentation, and supervisory requirements for these products, particularly when there is a pattern of recommending variable annuities to retail clients who may not fully appreciate their complexity and costs.
FINRA Rule 2010 requires brokers to “observe high standards of commercial honor and just and equitable principles of trade” in all of their business conduct. Even when a customer dispute is resolved through a settlement without any formal finding of wrongdoing, arbitrators and regulators may look to Rule 2010 when evaluating allegations that a broker failed to disclose material fees, downplayed risks, or otherwise failed to deal fairly with customers. In a matter like Feldhusen’s, where customers reportedly were not aware of the contract fees and were worried about market losses and performance, a FINRA arbitration panel could consider whether those circumstances reflect a broader failure to adhere to the ethical standards embodied in Rule 2010, especially if the broker had an ongoing obligation to review the annuity’s performance and communicate material information to the clients over time.
For over 45 years, Robert Wayne Pearce has helped investors recover losses caused by broker fraud, negligence, and unsuitable recommendations. His firm, The Law Offices of Robert Wayne Pearce, P.A., represents clients nationwide on a no-recovery, no-fee basis. Call (800) 732-2889 or email pearce@rwpearce.com for a free case review with an experienced securities attorney.