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Did Lisa Ann Brumm Cause You Investment Losses?

Lisa Ann Brumm of Portland, Oregon submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which she was fined $7,500 and suspended from association with any FINRA members in all capacities for a period of six months. The sanctions were based on findings that she recommended unsuitable variable annuities, borrowed money from the same customer and made misrepresentations all in violation of FINRA Rules 2111, 2330, 3240 and 2010. The suspension remains in effect from February 16, 2021, through August 15, 2021.

From July 2011 to May 2017, Lisa Ann Brumm was registered with Equitable Advisors LLC as an investment company and variable contracts products representative. According to FINRA’s findings, Brumm allegedly recommended that a customer invest $400,000 into two deferred variable annuities while also entered into an oral agreement to borrow $40,000. The findings state that Brumm did not have a reasonable basis to believe that the recommendations were suitable and was also aware of her member firms’ written procedures that did not permit representatives from borrowing money from a customer. In addition to the findings, FINRA alleged that Brumm negligently misrepresented to another customer the effect of a $20,000 withdrawal from a variable annuity which resulted in $600 in charges and fees. Although Lisa Ann Brumm is not currently registered or associated with a member firm, she remains subject to FINRA’s jurisdiction.

FINRA Rule 2111 requires that an associated person have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the associated person to ascertain the customer’s investment profile. FINRA

Rule 2330 states that no associated person shall recommend to any customer the purchase of a deferred variable annuity unless such associated person has a reasonable basis to believe, among other things, that (a) the customer would benefit from certain features of deferred variable annuities, such as tax-deferred growth, annuitization, or a death or living benefit; and (b) the particular deferred variable annuity as a whole including its riders and similar product enhancements are suitable for the particular customer.

FINRA Rule 3240 provides that no registered representative may borrow money from or lend money to any customer of such person, unless, among other things, the member has  written procedures allowing the borrowing and lending of money between such registered persons and customers of the member, and the registered person complies with certain notice requirements.

Violations of FINRA Rules 2111, 2330 and 3240 are also violations of FINRA Rule 2010.

Do You Need an Oregon Variable Annuity Investment Attorney?

Are you a Portland, Oregon investor who has suffered significant losses in your stock brokerage and investment accounts?  Did your Oregon stockbroker or investment advisor misrepresent or mislead you about a Variable Annuity investment or make an unsuitable recommendation that you invest in a Variable Annuity or otherwise mismanage your investment account? If so, you need representation by an experienced, highly-rated, and nationally recognized FINRA securities arbitration law attorney — an attorney who understands these highly complex and risky Variable Annuity investments.

Free Initial Consultation With Experienced Variable Annuities Investment Lawyers Serving Portland, Oregon Residents In FINRA Arbitration Proceedings

At The Law Offices of Robert Wayne Pearce, P.A.  we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout Oregon, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.

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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving Oregon citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.

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Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $140 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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