Cuso Financial Services, L.P. Broker Gerald Coyne Barred by FINRA For Variable Annuities
Posted on Wednesday, January 15th, 2020 at 5:49 pm
Cuso Financial Services, L.P. broker Gerald Coyne (CRD# 4589061) was recently barred by FINRA. Coyne has been registered with Cuso Financial Services, L.P. in Harrisburg, Pennsylvania from 2011 to 2018 and previously with Community Investment Services, Inc. in Jermyn, Pennsylvania from 2006 to 2011.
In December 2019, FINRA barred Coyne after he refused to appear for FINRA on-the-record testimony in connection with an investigation into whether Coyne made “misrepresentations, omissions, and unsuitable recommendations of variable annuities to customers using their rollover funds from their state retirement accounts. The findings stated that FINRA began investigating after reviewing Coyne’s member firm Form U5 filing disclosing that the firm had terminated his registration based upon client service issues and violations of firm policy.”
Coyne has been the subject of one customer complaint, according to his CRD report:
February 2019. “Attorney representing four clients alleges that the former CFS representative misrepresented material features and return potential for variable annuities purchased during years 2013-2017. The attorney and clients are seeking unspecified damages for surrender costs and market losses that would result from the premature surrender of the variable annuities. –Updated to include names of four new claimants with same allegations against former CFS representative in updated letter received on February 4, 2019 from same attorney representing the listed clients. **As an accommodation to avoid protracted legal expenses, CFS settled with the clients. CFS found no merit to the allegations against the firm.” The case was settled for $164,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Cuso Financial Services, L.P. may be liable for investment or other losses suffered by Coyne’s customers.
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