Erez Law recently filed a FINRA arbitration against Citizens Securities Inc. related to Colorado Bankers Life Annuities.
Their customer alleges that William Torrance (CRD #5086449), who was a registered representative of Merrill Lynch, Pierce, Fenner & Smith Incorporated in Philadelphia, Pennsylvania, since 2021. Previously, he was registered with Citizens Investment Services in Philadelphia, Pennsylvania, from 2012 to 2021.
The Erez Law client alleges the following in the newly filed FINRA claim:
The client emphasized to William Torrance that he was approaching retirement age, and that he was not interested in high-risk investments.
Erez Law alleges that the broker recommended that the client invest in a fixed annuity contract issued by Colorado Bankers Life Insurance Co. It is alleged that he represented that the Colorado Bankers Life Insurance Co. annuity was a safe and low-risk investment that would preserve the client’s principal while generating a guaranteed fixed annual return.
It is alleged that contrary to the broker’s representations, Colorado Bankers Life Insurance Co. was one of four insurance companies owned and controlled by disgraced insurance magnate Greg Lindberg, who had already had his flagship insurance company barred from conducting business in the state of Florida in connection with disturbing allegations of overstating assets.
According to the claim, despite warning signs about Greg Lindberg’s business practices, William Torrance recommended the client invest in an unsuitable and high-risk annuity issued by another Greg Lindberg-owned and controlled entity.
It is alleged that the client is currently unable to liquidate his annuity do to the rehabilitation and liquidation orders. By recommending the client invest the entire mandate in a single Colorado Bankers Life Insurance Co. annuity, William Torrance needlessly exposed the client to the risk that only a portion of his assets invested in the Colorado Bankers Life Insurance Co. annuity will receive the protections afforded by the state insurance guaranty association.
The complaint alleges that at the time Citizens Investment Services and William Torrance, Greg Lindberg was already barred from conducting business in the state of Florida in connection with disturbing allegations of overstating assets.
Furthermore, it is alleged that by recommending the client invest the entire mandate in a single Colorado Bankers Life Insurance Co. annuity, William Torrance needlessly exposed the client to the risk that only a portion of his assets invested in the Colorado Bankers Life Insurance Co. annuity will receive the protections afforded by the state insurance guaranty association.
Additionally, by concentrating approximately 75% of the client’s assets held with Citizens Securities Inc. in a single high-risk investment, William Torrance needlessly exposed the client to a higher degree of risk and only served to exacerbate his losses.
Regrettably, the Erez Law client is currently unable to liquidate his annuity do to the Rehabilitation and liquidation orders.
How to File a Claim Against William Torrance
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you 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.
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