Christopher Michael Herrmann of Greenwood, Indiana submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was assessed a deferred fine of $10,000 and suspended.
From September 2011 to May 2015, Herrmann was employed with Key Investment Services (KIS) as a General Securities Representative. According to FINRA, in September 2013 and October 2014, Mr. Herrmann recommended annuity transactions to retired and elderly customers. The findings stated that Mr. Herrmann failed to facilitate the transactions as a tax-free 1035 exchange, resulting in significant tax liability to the customers. Mr. Herrmann allegedly circumvented KIS’s compliance procedures and supervision by concealing these switch transactions and providing false information. Based upon the foregoing, FINRA concluded that Christopher Herrmann violated FINRA Rules 4511, 2111 and 2010. Continue Reading