Variable Annuity Investment Losses with Former Woodbury Financial Services, Inc. Broker Lisa Brumm
Posted on Monday, March 1st, 2021 at 7:48 pm
Erez Law is currently investigating former Woodbury Financial Services, Inc. broker Lisa Brumm (CRD# 2834764) regarding variable annuity investment losses. Brumm has been registered with Woodbury Financial Services, Inc. in Portland, Oregon from 2017 to 2020. Previously, Brumm was registered with AXA Advisors, LLC in Portland, Oregon from 2011 to 2017.
In February 2021, FINRA sanctioned Brumm to pay $7,500 in civil and administrative penalties and suspended him for six months after he, “consented to the sanctions and to the entry of findings that she recommended two unsuitable variable annuities totaling $400,000 to a customer. The findings stated that Brumm lacked a reasonable basis to believe that the customer would benefit from the features of deferred variable annuities or that the particular deferred variable annuities, including the rider, were suitable for the customer. The findings also stated that Brumm borrowed $40,000 from the same customer. Brumm’s member firm’s written procedures did not permit her to borrow from the customer. Brumm and the customer reduced their agreement to writing in the form of a promissory note and Brumm repaid the loan with $2,000 of agreed-upon interest. The findings also included that Brumm negligently misrepresented to another customer the effect of a withdrawal from a variable annuity. At the time, the customer received a systematic payment from the variable annuity each month. Brumm misrepresented to the customer that the withdrawal would reduce the monthly payments but would not eliminate them. Brumm should have known that the customer would not continue to receive monthly payments. The customer also incurred charges and fees associated with the withdrawal and subsequently entered into a settlement with the firm that made the customer whole for her losses.”
Brumm has been the subject of two customer complaints, both of which were denied, according to his CRD report.
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, Woodbury Financial Services, Inc. may be liable for investment or other losses suffered by Brumm’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.