FINRA fined Brokers International Financial Services, LLC representative Charles Anderson Cumber, Jr. of the firm's Albuquerque, New Mexico branch, for undisclosed selling away from his then-employer, US Bancorp Investments, Inc., while falsely reporting to the firm that he was not involved in any outside business activities.
According to FINRA, the violative sales included equity-indexed annuities and other insurance products, and resulted in commissions and compensation which Cumber likewise failed to disclose to US Bancorp of Albuquerque.
The findings state that Cumber (CRD #2514669) engaged in 24 equity-indexed annuity sales while associated with US Bancorp in 2015 and 2016, totaling $2.63 million and generating approximately $125,000 in commissions for Cumber. Investigators also found that Cumber earned an additional $27,000 in trailing compensation in connection with previous insurance product sales, received by the Cumber-controlled entity, Cumber & Associates LLC.
The report concludes that Cumber received approximately $345,000 in payments from the insurance company for the equity-indexed annuities and other insurance product sales while he was associated with US Bancorp.
FINRA claims that Cumber failed to disclose any of this business to US Bancorp from 2011 to 2016, and expressly misrepresented that he was not involved in any outside business activities when, in fact, he was. He also purportedly agreed not to sell insurance products for any entity other than US Bancorp without prior notice and approval. According to the report, Cumber had not notified, nor received approval, to engage in the aforementioned outside business activities.
In March 2016, Cumber separated from US Bancorp Investments and subsequently became associated with Wells Fargo Clearing Services, LLC, also of Albuquerque, NM.
In February 2017, Wells Fargo discharged Cumber for "failing to timely disclose outside activities."
According to his BrokerCheck report, Cumber first disclosed the existence of Cumber & Associates LLC in October 2016, which is seven months after he left US Bancorp.
If you have invested with Albuquerque, New Mexico-area broker Charles Anderson Cumber or with any representative or financial adviser who has sold undisclosed products away from their firm without authorization, and these potentially unsuitable and unregulated or unsupervised transactions have proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.