Philip Smith Suspended by FINRA After Series of Complaints, Unsuitable Variable Annuity Recommendation

Attorney Advising Disclaimer

Following Equitable Advisors' (Woodland Hills) termination of Philip Norris Smith for making misrepresentations during an investigation into a customer complaint, FINRA fined and suspended Smith for unsuitably recommending a trust purchase a $540,000 deferred variable annuity and fund it through withdrawals from an indexed annuity, despite negative tax consequences for the trust.

In AWC #2019064218701, FINRA found that Smith recommended the trust withdraw existing indexed annuity funds to pay for the new variable annuity Smith wished to purchase, resulting in negative tax consequences that could have been avoided had Smith used a different type of transaction to purchase the variable annuity.

Investigators wrote that Smith failed to research that option, resulting in an unnecessary tax liability.

After Equitable Advisors discharged him, Phil N Smith (CRD #2833891) joined OneAmerica Securities in Newport Beach, California, which similarly filed an employment separation after allegations disclosure just four months after Smith joined that firm.

The relevant customer dispute against Smith for unsuitable recommendations resulting in tax liability remains pending, but Smith in 2009 (while still associated with Equitable Advisors) previously settled a customer dispute that alleged damages as a result of an unsuitable variable annuity purchase.

If you invested with former Equitable Advisors and One America Securities broker Philip Smith or with any investment adviser or representative who unsuitably recommended you purchase a product by using the proceeds from sale or withdrawal of another product, and in doing so caused you to suffer losses, incur fees, or other damages such as added tax liabilities, 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.

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