Virginia Regulators Require License Surrender and Fines over sale of 54 Freedom Products
A Settlement Order was recently issued by the State of Virginia (Bureau of Insurance and Division of Securities) against two insurance salespersons and their firm. The Order may be found here.
In the Order, the Virginia Regulators alleged as follows:
a. “The Defendants, on multiple ocassions, sold over $2 million in unregistered securities in the form of qualified charitable gift annuities (“CGAs”) issued by 54 Freedom Foundation, Inc. (54 Freedom”) and promissory notes…”
b. The brokers involved mischaracterized the investment risks involved with the investments and failed to conduct adequate due diligence.
c. “Ultimately, principals of 54 Freedom misappropriated funds obtained through the sale of both 54 Freedom CGAs and Notes… As a result, all of the Defendants’ clients who purchased 54 Freedom CGAs or Notes appear to have lost their principal investments totaling over $2 million.”
Pursuant to the Order the salespersons surrendered their licenses to sell insurance and were required to pay monetary penalties.
If you were sold these investment products and wish to discuss your claims with an attorney, please contact Greco & Greco for a free consultation.
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