Stanley Niekras, a previously registered broker with MML Investors Services, LLC (MML), was named a Respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that he misrepresented to his customers, a 90 and 91 year old married couple, that he was entitled to over $70,000 for purported estate and financial planning services when he had no financial planning or advisory agreement with the elderly couple.
According to the FINRA complaint, Stanley Clayton Niekras, of Watertown, New York, allegedly presented the elderly couple, who were declining both physically and mentally, with bills claiming he had spent more than 264 hours working on their estate and was entitled to retroactive compensation at a rate of $250 an hour. The bill, which Mr. Niekras allegedly presented to the couple on MML letterhead, was for $72,636.18 and was “due upon receipt.”
FINRA’s complaint alleges that Mr. Niekras recommended that the customers’ children, who had been gifted $500,000 each by their parents, purchase a particular variable annuity with the money. Mr. Niekras was allegedly anticipating that the sales of the variable annuities would result in about $75,000 in commissions. When the children decided not to purchase the annuities (or any other products) that Mr. Niekras recommended, Mr. Niekras then allegedly presented the elderly customers with the bills for the estate and financial planning.
Stockbrokers, registered representatives, and other financial professionals have been known to engage in many types of fraudulent, negligent and prohibited behavior which are in violation of industry rules and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require broker-dealers to establish and implement a supervisory system in order to safeguard customer assets. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be liable to account holders for investment losses. As a result, account holders who have suffered losses stemming from a registered representative’s misrepresentations and/or omissions regarding investment recommendations can file a claim to recover damages against broker-dealers, like MML Investors Services, which have a duty to supervise its employees in order to prevent the above-described misconduct.
Have you suffered losses in your MML Investors Services or other investment account due to your stockbroker’s misrepresentations and omissions? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against MML Investors Services stockbrokers who may have misrepresented investments and caused investors losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.