The Financial Industry Regulatory Authority (FINRA) suspended broker Brett David Henderson and fined him $95,000 for engaging in unsuitable variable annuity (VA) switch transactions without consideration for fees or charges levied against his customers for these transactions.
Henderson was a self-employed insurance salesman since 1992 and stockbroker . From December 2006 to December 2007, was a registred representative (stockbroker) with Great American Advisors. From January 2008 through December 2009, he was a broker with Planmember Securities Corporation.
FINRA found that between December 2006 and December 2007 Henderson improperly employed a "one-size-fits-all" mindset in his execution of 33 unnecessary switches regarding the MetLife Investors USA Variable Annuity. In using his one-size-fits-all strategy, FINRA found that Henderson did not fully read the prospectus; never considered other investment options; and only described and sold the product with one particular rider despite the fact that the VA had other living and death benefit riders. FINRA further found that Henderson failed to consider whether the variable annuity was suitable to his individual customers' needs and risk tolerances. In sum, Henderson predetermined the product with the one particular rider was the only one he wanted to sell.
Henderson's improper activity prompted surrender penalties and fees in the amount of $82,505, all of which FINRA found were borne by his customers. Meanwhile, Henderson received $84,296 in commissions for these transactions. Henderson's customers paid fees and penalties, while Henderson himself pocketed a nearly equivalent amount of money in commission and profit.
Suspended until March 15, 2013, Henderson was previously the target of a 2004 customer complaint. The complaint filed with Henderson's former firm—Washington Square Securities—alleged that Henderson failed to adequately inform the customer of the firm's investment policies. The claims were disputed by Reliastar Insurance Co. and the file was closed (BrokerCheck).
If you have invested with Brett David Henderson or another broker or firm and believe your advisor has engaged in unnecessary transactions that have resulted in excess or improper charges or penalties, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for consultation.