FINRA suspends Wolf Alexander Popper (CRD #365826, New York, New York)
What is FINRA Rule 2010? FINRA Rule 2010 is a broad, sweeping rule that is utilized to address misconduct that is not directly addressed by another FINRA rule. The rule is centered around the use of ethical business practices by brokers and financial institutions....read more
April 10, 2018 – An AWC was issued in which Popper was fined $5,000 and suspended from association with any FINRA member in all capacities for 30 days. Without admitting or denying the findings, Popper consented to the sanctions and to the entry of findings that he made and sent to prospective customers numerous retail communications concerning an investment strategy that he had developed involving the purchase of variable annuities, which violated FINRA’s rules governing member communications in various respects. The findings stated that pursuant to this investment strategy, Popper recommended that the customer withdraw money from the equity in his or her home, either by obtaining a second mortgage or through a refinancing, and then use the proceeds to purchase a specific variable annuity and policy riders to provide both immediate income and guaranteed future minimum income levels. While the strategy Popper recommended in the variable annuity communications had no up-front charges, both the variable annuity and the riders would result in fees being
charged to the customer, which would be deducted during the life of the investment. As described by
Popper, customers who pursued this strategy could use the income from the variable annuity to pay
the second or refinanced mortgage and reap the benefit of the additional income generated by the
variable annuity. The findings also stated that the retail communications concerning this investment strategy made by Popper did not make clear that the product being recommended was a variable annuity; described the investment strategy as being “no cost,” when, in fact, the purchase of both the variable annuity and the
riders included fees; stated that the strategy would provide “guaranteed” income without disclosing
the risks associated with variable annuities; did not describe the risks of using the proceeds from
a home mortgage for investment purposes; and compared the strategy to a 401(k) or IRA without
disclosing the material differences between variable annuity investments and investing in a 401(k)
or IRA. The findings also included that the communications violated the full-disclosure requirement
and prohibition on misleading statements contained in FINRA’s advertising rules. The communications
did not result in any sales of variable annuities or generate commissions for Popper.
The suspension was in effect from May 7, 2018, through June 5, 2018. (FINRA Case #2015043369502)
If you or someone you know has lost money investing with Wolf Alexander Popper, call the experienced FINRA arbitration attorneys at Epperson & Greenidge at 877-445-9261 for a free consultation. You may be eligible to recoup your losses. Epperson & Greenidge accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-445-9261 now to speak to an attorney for free.