FINRA fined and suspended Woodbury Financial Services (Portland, Oregon) broker Lisa Ann Brumm aka Lisa Ann Moon for recommending $400,000 in unsuitable variable annuities (VAs), negligent misrepresentation regarding VA withdrawals, and for borrowing money from a customer in violation of FINRA rules.
According to AWC #2019062286101, Lisa Brumm (CRD #2834764), who also founded a company known as My Financial Girlfriend, recommended a customer invest $400,000 into two deferred variable annuities and purchase an associated guaranteed minimum death- and income-benefit rider. Investigators wrote that Brumm lacked a reasonable basis to believe the transactions were suitable for her customer and found that the customer's time horizons for the two VA contracts were too short to achieve tax deferral benefits without being subject to tax penalties.
Based upon its own internal review, FINRA determined that Brumm's recommendation was not suitable.
FINRA also found that Brumm borrowed $40,000 from this customer in contravention of policies at Brumm's firm at the time, AXA Advisors, also of Portland, OR.
Finally, investigators found that Brumm negligently misrepresented that while a VA withdrawal would reduce monthly payments, it would not eliminate them. Instead, FINRA wrote, Brumm should have known that the customer would stop receiving monthly payments. The report states that based on this misrepresentation, Brumm's customer withdrew funds from the VA, which in turn stopped monthly payments and also caused the customer to incur charges and fees associated with the withdrawal.
Lisa Brumm's file lists finance and/or insurance-related business activities My Financial Girlfriend (registered in Oregon as Moon & Bear, for which Brumm serves as CEO), Lisa Brumm Life & Health Insurance Agent, and Colonial Life & Accident Insurance Company (as Moon & Bear dba My Financial Girlfriend).
If you invested with former AXA Advisors and Woodbury Financial Services broker Lisa Ann Brumm or with any financial adviser whose unsuitable recommendations to purchase, sell, or withdraw from variable annuities or other investments have proven harmful to your finances or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.