Securities News Releases
Monday, July 12, 2010
Contact: Laura Egerdal, (573) 526-0949
Contact: Abe Rakov, (573) 526-4734
Carnahan Returns $10,500 to Family of Deceased Southwest Missouri Investor
Jefferson City, MO – Missouri Secretary of State Robin Carnahan today announced an agreement with Edward Jones to return more than $10,500 to the family of a deceased Southwest Missouri investor. When the investor was 83 years old she was sold a variable annuity with an inappropriate death benefit that was unsuitable because of her age. When the investor passed away, her family lost the value of the appropriate death benefit.
“It is unacceptable for advisors to recommend investment options that don’t make sense for their clients,” Carnahan said. “Investors should make sure their advisors fully explain where their money is going before handing over their savings.”
The investor had $90,000 to reinvest from a bond that had matured. An Edward Jones agent recommended reinvesting her money in a variable annuity with a death benefit option that, because of the investor’s age, was unsuitable. When the investor died, her family lost the value of the appropriate death benefit.
Edward Jones, which was charged with failing to reasonably supervise its agent, will pay $25,000 to the Investor Education and Protection Fund and $5,000 in costs.
For more information regarding investments and fraud protection, or for information regarding a company or representative, call the toll free Investor Protection Hotline at 1-800-721-7996 or visit the Secretary of State’s online Investor Protection Center at www.MissouriSafeSavings.com.
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To find out more about Missouri's Secretary of State's office, visit www.sos.mo.gov